01Monetary policy is considered a topic of macroeconomics because it can affect what?मौद्रिक नीति को समष्टि अर्थशास्त्र का विषय इसलिए माना जाता है क्योंकि यह क्या प्रभावित कर सकती है?
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Economics
Measures to correct excess/deficient demand - Money supply
In Class 12 Economics, this topic from “Determination of Income and Employment” explains how changes in money supply can correct excess or deficient demand. Students learn how the central bank can reduce money supply during excess demand and inflationary pressure by selling securities, raising the bank or repo rate, and increasing reserve requirements. During deficient demand, it can increase liquidity through security purchases, lower interest rates, and reduced reserve requirements. The topic connects monetary policy with credit, aggregate demand, income, and employment.
Medium · Level 1 · 1 questions
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