Monetary policy primarily affects an economy by either encouraging or discouraging in new capital.
Question
Solution 1
Monetary policy primarily affects an economy by either encouraging or discouraging investment in new capital. This is done through the manipulation of interest rates and the supply of money in the economy.
Step 1: The central bank or monetary authority of a country sets the interest rates. When the Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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