The monetary authorities signal changes in monetary policy by:
A)selling bonds in the open market
B)buying bonds in the open market
C)changing the 50-basis-point range for the overnight rate
D)issuing a press release
E)informing the government of their decision

Question

Quizplus · Accepted Answer

Monetary authorities often signal changes in monetary policy by adjusting the target range for the overnight interest rate, which is a key tool for influencing economic activity.

The Monetary Authorities Signal Changes in Monetary Policy By