The stack plays a crucial role in managing subroutine calls and returns by storing the return address and local variables. When a subroutine is called, the address of the instruction following the call is pushed onto the stack, allowing the program to resume execution after the subroutine completes. Additionally, the stack is used to allocate space for local variables within the subroutine. Upon returning, the return address is popped from the stack, directing the program back to the correct location in the code.
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