Which of the following features would characterize a good monetary policy instrument?

Question

Quizplus · Accepted Answer

A good monetary policy instrument should be closely linked to the objectives of the monetary policy, such as price stability, economic growth, or low unemployment rates. The instrument should be flexible enough to adapt to changing economic conditions but also predictable and transparent to the public. The other features, such as being controllable and rigid or difficult to change, are not necessarily desirable as they may limit the effectiveness and efficiency of the monetary policy.

Which of the Following Features Would Characterize a Good Monetary