The key goal of monetary policy is to
A) reverse the productivity growth slowdown
B) lower taxes
C) keep the budget deficit small and/or the budget surplus large.
D) maintain low inflation

Question

Quizplus · Accepted Answer

The key goal of monetary policy is to maintain low inflation. This is achieved by adjusting interest rates and controlling the money supply, which can affect the overall level of demand and economic activity in the country. Keeping inflation low helps to ensure stable growth, as it allows for clearer planning, investment, and price-setting decisions by businesses and consumers.

The Key Goal of Monetary Policy Is to