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Question
which best describes a central banks primary goals? limiting inflation and reducing unemployment managing credit and ensuring the money supplys liquidity controlling stagflation and reducing unemployment reducing unemployment and maintaining cash flow
Central banks aim to keep inflation in check and promote full - employment (reduce unemployment). These are key macro - economic objectives. Managing credit and ensuring money supply liquidity are means to these ends, not primary goals. Controlling stagflation is difficult and not a typical primary goal. Maintaining cash flow is not a central bank's primary focus.
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limiting inflation and reducing unemployment