Possible targets for monetary policy include all of the following except
A) the government's budget deficit or surplus.
B) money growth rate.
C) expected changes in the price level.
D) the interest rate.

Question

Quizplus · Accepted Answer

The government's budget deficit or surplus is not a target for monetary policy, as it is determined by fiscal policy decisions made by the government. Monetary policy focuses on influencing the money supply, interest rates, and inflation rates to achieve certain economic goals. Money growth rate, expected changes in the price level, and the interest rate are all potential targets for monetary policy.

Possible Targets for Monetary Policy Include All of the Following