What is the main purpose of monetary policy?
A)to affect how much money is circulating through the economy
B)to control the amount of public debt sold to foreign states
C)to equalize income disparity among citizens of the United States
D)to expand the government's revenue base so as to reduce the deficit

Question

Quizplus · Accepted Answer

The main purpose of monetary policy is to affect how much money is circulating through the economy in order to achieve specific economic goals such as price stability, full employment, and economic growth.

Note: B, C, and D are not accurate descriptions of the main purpose of monetary policy.

What Is the Main Purpose of Monetary Policy