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Answer :
Controlling the money supply to achieve desired macroeconomic goals is called monetary policy.
Monetary policy refers to the actions taken by a central bank or monetary authority to regulate and influence the money supply, interest rates, and credit conditions in an economy .
Through policy, a central bank can use various tools to manage the money supply, such as open market operations (buying or selling government securities), adjusting reserve requirements for banks, and setting interest rates. By manipulating these factors, the central bank aims to achieve specific macroeconomic objectives, such as controlling inflation, promoting economic growth, stabilizing employment, and maintaining financial stability.
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