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Governments try to maintain the confidence of investors, business people, and consumers in their economies. Lost confidence causes companies to put off investing in new

Governments try to maintain the confidence of investors, business people, and consumers in their economies. Lost confidence causes companies to put off investing in new products and technologies, and to delay the hiring of additional employees. Interest rates and exchange rates play a large role in this confidence.

Can central banks successfully influence these? Provide relevant economic situation

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