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Similarly, when these instruments are bought, money is released into the system (University of Phoenix, 2002).

In the changing times of today, it is important to keep a fine balance between the key macroeconomic variables, such as GDP, unemployment, inflation, and interest rates. Complex analyses are done to determine appropriate combinations of monetary policy that would best achieve the balance that our economic environment requires (University of Phoenix, 2002)...

Complex analyses are done to determine appropriate combinations of monetary policy that would best achieve the balance that our economic environment requires (University of Phoenix, 2002). To determine an appropriate combination of monetary policies to use, one must first understand the effects that monetary policies have on the key macroeconomic variables...

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