question archive Governments try to maintain the confidence of investors, business people, and consumers in their economies

Governments try to maintain the confidence of investors, business people, and consumers in their economies

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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 products and technologies, and consumers to delay the purchase of major items. Interest rates and consequently exchange rates play a large role in this confidence. How significant a role does Central Banks have in economic growth?

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