Which of the following is a likely objective of monetary policy?
A) Achieving price stability
B) Stabilizing economic activity
C) Closing the output gap to zero
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

Achieving price stability and stabilizing economic activity are both common objectives of monetary policy. Closing the output gap to zero is a more specific objective that may be pursued depending on the circumstances, but it is not always a primary objective.

Which of the Following Is a Likely Objective of Monetary