The goal of the monetary policy in Australia:
A) is to help low-income earners find a better job.
B) is to provide everyone with a high income.
C) is to keep the interest rates as high as possible.
D) is to keep inflation between 2 and 3 per cent.

Question

Quizplus · Accepted Answer

The goal of the monetary policy in Australia is to keep inflation between 2 and 3 per cent. This is done by adjusting the cash rate, which influences interest rates, and managing the supply of money in the economy. The aim is to promote economic growth and stability while keeping prices stable. The other options (A, B, and C) are not accurate descriptions of the monetary policy goals in Australia.

The Goal of the Monetary Policy in Australia