Economy, asked by aslamnilamboor123, 6 months ago

discuss the monetary policy to correct inflationary gap and deflationary gap​

Answers

Answered by mohdaabidzaidi11
0

Answer:

Monetary policy refers to control the suppy of money in the economy. its motive to correcting the situation of inflation and deflaction in the economy.

EXAMPLE:-

Repo rate is control ( in case to control inflaction) when rise in cost of capital

Repo rate is control ( in case to control deflaction) when fall in cost of capital

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