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This policy differs from the monetary policy in a sense that is refers to efforts by the government to stimulate the economy directly through spending. The purpose of this paper will focus on how the federal reserve uses tools to control money, how those influences will effect the money supply and macroeconomic factors, how money is created and what combinations of monetary policy will help achieve a balance between economy growth, low inflation and a reasonable rate of unemployment.
One of the main responsibilities for the Federal Government is to regulate the money supply so as to keep production, prices, and employment stable...
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