a) Explain the tools and objectives of monetary policy. Discuss the role of the central bank in
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Question:
a) Explain the tools and objectives of monetary policy. Discuss the role of the central bank in managing the money supply and interest rates.
b) Define fiscal policy and discuss its objectives. Explain the difference between expansionary and contractionary fiscal policy measures.
c) Analyse the concept of automatic stabilizers and their role in stabilizing the economy during economic fluctuations.
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