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Monetary Policy Has Two Objectives

Question 12

Multiple Choice

Monetary policy has two objectives:


A) to ensure that sufficient money and credit are available to meet the needs of the economy and to minimize fluctuations-recessions and inflationary booms-around a long-term trend.
B) to ensure full employment and low interest rates.
C) to reduce the costs of government deficit spending and keep interest rates low.
D) to monetize all government spending and keep unemployment below 6 percent.

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