The policy aimed at managing interest rates to pursue macroeconomic objectives is called:
A)fiscal policy.
B)interest rate policy.
C)monetary policy.
D)exchange rate policy.

Question

Quizplus · Accepted Answer

The policy aimed at managing interest rates to pursue macroeconomic objectives is called monetary policy. Monetary policy refers to the actions taken by a central bank to control the supply and cost of money in the economy, through the use of interest rates, reserve requirements, and other monetary tools. It is designed to achieve macroeconomic objectives such as price stability, low unemployment, and sustainable economic growth. Fiscal policy, on the other hand, involves government spending and taxation decisions that affect the economy. Interest rate policy and exchange rate policy are subsets of monetary policy.

The Policy Aimed at Managing Interest Rates to Pursue Macroeconomic