Monetary policy is
A) the policy concerning changes in the money supply that is pursued to achieve particular macroeconomic goals.
B) the expenditures and taxation policy that the government pursues to achieve particular macroeconomic goals.
C) the investment policy that businesses pursue to achieve particular macroeconomic goals.
D) the spending and saving policy that consumers pursue to achieve particular macroeconomic goals.
E) the spending policy that the Treasury pursues to achieve particular macroeconomic goals.

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by a central bank or government to control the money supply and achieve macroeconomic goals such as low inflation, stable exchange rates, and steady economic growth. It involves changing interest rates, reserve requirements, and open market operations to influence the level of money in circulation and influence aggregate demand in the economy. Therefore, choice A is the correct answer.

Monetary Policy Is