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Mixed Economy possesses elements of command economy as well as market economy which ensure that there is some government control over the economy as well. Since each and every element of the economy in interlinked, therefore government policies become key control indicators for the betterment of economy. The fiscal policies, monetary policies serve as great tools to influence the market and businesses. For example, an increase in discount rate by the central bank can change the market conditions and can affect both market based and command based economy.
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