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Consider the following statements:
1. Monetary policy invariably supports Fiscal policy.
2. Monetary policy in India, comes under the domain of RBI
Which of the given statements is/are correct?
1 only
2 only
Both 1 & 2
Neither 1 nor 2
Both statements are correct.
Monetary policy involves changing the interest rate and influencing the money supply. Fiscal policy involves the government changing tax rates and levels of government spending to influence aggregate demand in the economy.
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