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What is monetary policy?
the process by which a country’s central bank regulates the money supply and interest rate to maintain economic stability
What is the main goal of the monetary policy?
To manage inflation
How does the monetary policy help the economy?
The economic growth is slowing down, central banks may lower interest rates to stimulate the economy
What are interest rates?
the amount you’re charged for borrowing money, shown as a percentage of the total amount of the loan
What is inflation?
the rate of the increase in prices over a given period of time
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