Advantages of using monetary policy to control the economy

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  • Created by: nouch99
  • Created on: 26-03-14 21:44

Base rates are set each month by the MPC, using all available data to choose an appropriate rate to achieve the target level of CPI - quick to adapt.

Most households and firms have savings/debt so change in base rate will have a direct effect.

Consumer and business confidence determine future expectations of households and firms.  Increase in the base…


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