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How is it that monetary policy, such as open market operations, injects "new" money into the economy, where as fiscal policy such as tax incentives does not inject "new" money into the economy? What is the difference? Could you explain.

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Solution Summary

Effects of open market operations are denoted.

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Umut Oltulu, MBA
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  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
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