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5) Discuss the the policy tools and the mechanics through which monetary policy actions are transmitted to the real economy by a central bank. In your opinion, which should be the primary objective of monetary policy—price stability, employment or financial stability? Substantiate.

TopicEconomic growth; Resource mobilization

5) Discuss the the policy tools and the mechanics through which monetary policy actions are transmitted to the real economy by a central bank. In your opinion, which should be the primary objective of monetary policy—price stability, employment or financial stability? Substantiate. (200 Words)

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