Answer to Question #67504 in Macroeconomics for Stephen
kinds of monetary policy the government may adopt. Explain also how such policies affect
(i) the market for bank reserves, (ii) the money market, (iii) the market for loanable funds,
and (iv) real GDP and the price level in the economy.
i) increasing of reserves
ii) decreasing of inflation
iii) increasing of price of loanable funds
iv)real GDP may decrease, inflation decreases
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