In pursuing a strategy of monetary targeting,the central bank announces that it will achieve a certain value (the target)of the annual growth rate of a ________.
A)a monetary aggregate
B)a reserve aggregate
C)the monetary base
D)GDP

Question

Quizplus · Accepted Answer

Monetary targeting is a monetary policy framework where the central bank sets a target for a specific monetary aggregate, such as M2 or M3, and adjusts its policy instruments to achieve the target growth rate of that aggregate. The choice B) reserve aggregate and C) the monetary base are not commonly used as targets in monetary targeting strategy, and D) GDP is not a monetary aggregate.

In Pursuing a Strategy of Monetary Targeting,the Central Bank Announces