Which of the following variables is likely to serve as an intermediate target for monetary policy?
A)Money supply
B)Inflation rate
C)Open-market operations
D)Unemployment rate

Question

Quizplus · Accepted Answer

The money supply is a key variable in the conduct of monetary policy, as changes in the money supply can have direct effects on interest rates and economic activity. Central banks often set targets for the growth of the money supply as an intermediate target for their monetary policy operations.

Which of the Following Variables Is Likely to Serve as an Intermediate