A countercyclical monetary policy is conducted by ________ with the overall goal of ________.
A) the government; reducing economic fluctuations
B) the central bank; increasing economic activity
C) the central bank; reducing economic fluctuations
D) the government; increasing economic activity

Question

Quizplus · Accepted Answer

A countercyclical monetary policy is conducted by the central bank with the overall goal of reducing economic fluctuations. This type of policy aims to stabilize the economy by using monetary tools to counteract the effects of economic cycles, such as recessions or booms. The central bank may use measures such as adjusting interest rates, changing reserve requirements, or engaging in open market operations to achieve its countercyclical policy objectives.

A Countercyclical Monetary Policy Is Conducted by ________ with the Overall