Monetary policy can be most accurately described as
A) the use of government taxation and expenditures to achieve macroeconomic goals.
B) the use of the government's regulatory powers to improve economic efficiency.
C) the government provision of goods to improve economic efficiency.
D) the deliberate control of the money supply to achieve macroeconomic goals.

Question

Quizplus · Accepted Answer

Monetary policy refers to the deliberate control of the money supply, interest rates, and credit conditions by a central bank or monetary authority with the aim of achieving macroeconomic goals such as price stability, economic growth, and full employment. It involves using tools such as open market operations, reserve requirements, and discount rates to regulate the supply of money in the economy.

Monetary Policy Can Be Most Accurately Described as