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The central bank focuses on two main goals: keeping prices stable and ensuring there are enough jobs for everyone. When certain events affect different parts of the economy differently, the central bank adjusts interest rates and uses tools to tackle these issues. By lowering or raising interest ratRead more
The central bank focuses on two main goals: keeping prices stable and ensuring there are enough jobs for everyone. When certain events affect different parts of the economy differently, the central bank adjusts interest rates and uses tools to tackle these issues. By lowering or raising interest rates, they can address problems with stable prices and employment.
To make good decisions, the central bank watches things like inflation rates and how much people are getting paid. This helps them decide what policies to use based on how the economy is doing. They also work closely with fiscal policy, which is how the government manages spending and taxes. By working together, these efforts make sure the economy stays strong and balanced.
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