Monetary Policy Has Two Objectives

question 21

Multiple Choice

Monetary policy has two objectives:

• A)to ensure that sufficient money and credit are available to meet the needs of the economy and to minimize fluctuations-recessions and inflationary booms-around a long-term trend.
• B)to ensure full employment and low interest rates.
• C)to reduce the costs of government deficit spending and keep interest rates low.
• D)to monetize all government spending and keep unemployment below 6 percent.

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