Which of the following is a likely objective of monetary policy?
A)achieving a zero inflation gap
B)stabilizing economic activity
C)avoiding large changes in unemployment
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All of the above are likely objectives of monetary policy. Monetary policy aims to achieve low and stable inflation, which reduces uncertainty for households and businesses and supports long-term economic growth. It also seeks to stabilize economic activity by influencing interest rates and the availability of credit, which affects investment and consumption decisions. Additionally, monetary policy can play a role in avoiding large changes in unemployment by promoting sustainable economic growth and avoiding recessions or other economic crises.

Which of the Following Is a Likely Objective of Monetary