Economics Question: What is the significance of the "natural rate of interest" in monetary policy, and how does it relate to the central bank's goals of price stability and full employment? A$)$ The natural rate of interest has no impact on monetary policy. B$)$ The natural rate of interest is the interest rate that aligns savings and investment in the economy and is consistent with full employment and stable prices; the central bank uses this rate as a reference point in setting its policy rates. C$)$ The natural rate of interest is determined solely by government spending. D$)$ The natural rate of interest always leads to inflation.

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