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Which of the Following Are Monetary Policy Goals

question 153

Multiple Choice

Which of the following are monetary policy goals?
I. maintain high interest rates
II. keep unemployment rates low
III. reduce the size of the banking sector
IV. prevent high rates of inflation


Definitions:

Consumption Spending

The total amount of money spent by households and individuals on goods and services within a specific time period.

Marginal Propensity

A measure of how much an individual's consumption changes with a change in income.

Disposable Income

The cash reserves left for households to spend and save after paying income taxes.

Disposable Income

Funds households have for saving and spending following the deduction of income taxes.

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