Question

what is monetary policy ?how is it used during the situation of excess demand and deficient demand​

Answer 1

Answer:

Hyyy

Explanation:

Monetary policy measures to correct excess demand situation are increase in CRR, increase in bank rate, etc. Fiscal policy measure to correct deficient demand situation are: reduction in tax rates, increase in public expenditure, etc.

Answer 2

Answer:

monetary policy

Definition: Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.

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