Suggest measures to check Excess demand.
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Measure to Correct Excess Demand – Explained!
In order to correct Excess Demand, the following measures may be adopted:
Two major instruments of Monetary Policy, used to decrease availability of credit are:
Increase in Bank Rate:
Open Market Operations (Sale of securities):
Increase in Legal Reserve Requirements (LRR):
There are two components of legal reserves:
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Answer:
- Measure to Correct Excess Demand – Explained!
- In order to correct Excess Demand, the following measures may be adopted:
- Two major instruments of Monetary Policy, used to decrease availability of credit are:
- Increase in Bank Rate:
- Open Market Operations (Sale of securities):
- Increase in Legal Reserve Requirements (LRR):
- There are two components of legal reserves:
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