A central bank that wants to stabilize the economy in the short run should try to

Question

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A central bank that wants to stabilize the economy in the short run should try to affect aggregate demand through open market operations. This involves buying or selling government securities in the open market to increase or decrease the money supply and influence interest rates to either stimulate or slow down economic activity. This can help to address short-term economic fluctuations and achieve stability in the economy. Options A, B, D, and E do not address short-run economic stabilization directly.

A Central Bank That Wants to Stabilize the Economy in the Short