How full employment can be secured with the help of monetary policy?
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The usual goals of monetary policy are to achieve or maintain full employment, to achieve or maintain a high rate of economic growth, and to stabilize prices and wages. ... The Fed uses three main instruments in regulating the money supply: open-market operations, the discount rate, and reserve requirements.
Explanation:
When the economy is at full employment that increases the competition between companies to find employees. This means skilled workers can demand higher wages with more benefits and businesses are more likely to grant them. This can be very good for individuals but bad for the economy over time.
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