The fundamental objective of monetary policy is to assist the economy in achieving:
A) A rapid pace of economic growth
B) A money supply which is based on the gold standard
C) A full-employment, noninflationary level of total output
D) A balanced-budget consistent with full-employment

Question

Quizplus · Accepted Answer

The primary objective of monetary policy is to achieve a full-employment, noninflationary level of total output. This means that the central bank aims to keep inflation low and stable while promoting economic growth and job creation. A money supply based on the gold standard or a balanced-budget consistent with full-employment may be secondary objectives or policy preferences, but they are not the primary goal of monetary policy.

The Fundamental Objective of Monetary Policy Is to Assist the Economy