Central banks try to use their influence over the money supply to change interest rates.

Name: Central banks try to use their influence over the money supply to change interest rates.
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Question

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Central banks adjust the money supply in an economy primarily through open market operations, lending to banks, and setting reserve requirements, with the goal of influencing overall interest rates to target inflation, manage employment levels, and stabilize the currency.

Central Banks Try to Use Their Influence Over the Money