Monetary policy is

Question

Monetary policy is

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by central banks or monetary authorities to manage the money supply and interest rates in the economy with the aim of achieving specific macroeconomic goals, such as low inflation, stable prices, and full employment. This is typically done by adjusting the money supply through buying and selling government securities, setting interest rates, and controlling bank reserve requirements. Option A is incorrect as laws passed since the Great Depression cover a variety of areas beyond monetary policy. Option B is incorrect as corporations do not enact policy to control prices and output at the macroeconomic level. Option D is incorrect as it refers to fiscal policy, which involves government spending and taxation. Option E is incorrect as it refers to labor regulations, which are a separate issue from monetary policy.

Monetary Policy Is