Which of the following are goals of monetary policy?
A)maximising the value of the dollar relative to other currencies, economic growth and high employment
B)price stability, maximising the value of the dollar relative to other currencies and high employment
C)price stability, economic growth and high employment
D)price stability, economic growth and maximising the value of the dollar relative to other currencies

Question

Quizplus · Accepted Answer

The usual goals of monetary policy are price stability, economic growth, and high employment. Option C lists these three goals. Option A is incorrect because maximising the value of the dollar relative to other currencies is not a typical goal of monetary policy, as it may conflict with the other goals. Option B is partly correct, but it is missing the goal of economic growth. Option D is also partly correct, but it overemphasises the goal of the exchange rate and neglects the other two goals.

Which of the Following Are Goals of Monetary Policy