The ultimate goal of monetary policy is
A) interest-rate stability.
B) economic growth with low inflation.
C) zero unemployment.
D) a favorable exchange rate of the dollar.
E) a stable money supply.

Question

Quizplus · Accepted Answer

The ultimate goal of monetary policy is to achieve economic growth while keeping inflation low. This is because low inflation provides a stable environment for economic growth and investment, which in turn creates jobs and improves standards of living. However, unemployment and exchange rates are also important considerations for monetary policy, but they are not the ultimate goals.

The Ultimate Goal of Monetary Policy Is