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Share a real-life scenario where a central bank would find it necessary to implement expansionary monetary policy. How would this policy aim to stimulate the
- Share a real-life scenario where a central bank would find it necessary to implement expansionary monetary policy. How would this policy aim to stimulate the economy, and what potential benefits or risks might arise from its implementation?
- Describe a situation where a central bank would want to implement contractionary monetary policy. How can this policy aid in curbing inflationary pressures or maintaining financial stability? Consider the potential impact on consumers, businesses, and the overall economic environment, and highlight any potential challenges or trade-offs that may arise from implementing contractionary measures.
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