Which of the following is a primary objective of monetary policy?
A) Achieving a zero natural rate of unemployment
B) Targeting a zero rate of inflation
C) Achieving price stability
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

The primary objective of monetary policy is to achieve price stability, which refers to the stability in the general level of prices of goods and services in an economy over time. While achieving a low natural rate of unemployment and targeting a low rate of inflation are also important, they are not the primary objectives of monetary policy.

Which of the Following Is a Primary Objective of Monetary