Problem
1. Why does the Bank of England act to influence short-term rather than long-term interest rates?
2. Why do sales of gilts to the non-bank private sector reduce money growth, whereas sales of gilts to the banking sector increase money growth?
3. In what ways are fiscal policy and monetary policy related?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.