Which of the following is NOT a way in which a central bank can conduct its monetary policy?
A)by establishing target interest rates and then undertaking open market operations to maintain them
B)by buying and selling government bonds
C)by making small policy changes and readjusting policies as needed
D)by changing the rate of capital accumulation to influence aggregate supply
E)by changing interest rates to influence spending on durable goods and investment

Question

Quizplus · Accepted Answer

Central banks do not have the direct ability to change the rate of capital accumulation as it is influenced by a range of factors outside their control, such as technology and individual business decisions. The other options listed are all common ways in which central banks conduct monetary policy.

Which of the Following Is NOT a Way in Which