1. Give some other examples of the impossibility of using one policy instrument to achieve two policy...
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1. Give some other examples of the impossibility of using one policy instrument to achieve two policy objectives simultaneously.
2. If the central bank wanted to achieve a lower rate of inflation and also a higher exchange rate, could it under these circumstances rely simply on the one instrument of interest rates?
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1 Two examples are Using changes in personal allowances on income tax to boost aggregate demand and ...View the full answer
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