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(Solved): Questions 8 How are interest and bonds related to the expansion and contraction of the money supply ...
Questions 8 How are interest and bonds related to the expansion and contraction of the money supply? That is, the change in the aggregate demand and supply of money?
Central Banks of sovereign nations uses Federal Bonds and interest rates to control supply and demand of money in the economy. Let's see how does it happen. Interest rates of both Deposits and loans of Banks are directly related to Bank rate of the C