as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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what decisions does a central bank make to influence the economy?
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a central bank can make decisions to influence the economy by setting monetary policies. these policies include setting interest rates, issuing and buying government bonds, and intervening in currency markets. a central bank can also implement quantitative easing policies to increase the money supply and stimulate the economy.
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