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Introduction to Economics💰
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Following the last question, we can conclude that monetary policy is a form of control.
Following the last question, we can conclude that monetary policy:
What is the result of a price ceiling?
Answer:
In order to set the interest rate (= price) in the money market, the central bank would need to know the constraints of all suppliers: to what extent they are capable of going without liquidity in exchange for bonds.
Following the last question, we can conclude that monetary policy is a form of price control.