Monetary policy based on monetary aggregates operates first on income (Y), which then impacts on money supply (M), which in turn affects the money base (MB).

Name: Monetary policy based on monetary aggregates operates first on income (Y), which then impacts on money supply (M), which in turn affects the money base (MB).
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Monetary policy based on monetary aggregates typically operates by affecting the money base (MB) first, which then influences the money supply (M), and subsequently impacts income (Y).

Monetary Policy Based on Monetary Aggregates Operates First on Income