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The equation for aggregate demand for a given price level is Y=C+I+G+(X-IM). Which part of aggregate...

The equation for aggregate demand for a given price level is Y=C+I+G+(X-IM). Which part of aggregate demand does monetary policy influence the most?

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Among the given variables in the equation, can be mentioned that the value that is influenced by the monetary policy most is consumer spending or C AND THIS IS BECAUSE OF THE FACT THAT IT HAS AN IMMEDIATE EFFECT DIRECTLY WHERE IF THE MONETARY POLICY SUGGESTS INCREASE IN THE MONEY SUPPLY THEN THERE WOULD BE DIRECT INCREASE IN THE CONSUMER SPENDING LEVELS ON THE WHOLE AND VICE VERSA AND THOUGH OTHER VARIABLES ARE AFFECTED THEY ARE NOT AS MUCH AFFECTED AS CONSUMER SPENDING.

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