The Goals of Monetary Policy Tend to Be Interrelated

question 73

Multiple Choice

The goals of monetary policy tend to be interrelated.For example,when the Fed pursues the goal of ________,it also can achieve the goal of ________ simultaneously.

• A)high employment; economic growth
• B)high employment; lowering government spending
• C)economic growth; a low current account deficit
• D)stability of financial markets; a low current account deficit

---

Definitions:

Tariffs And Quotas

Policies and restrictions that countries use to control the amount of goods coming into and going out of the country to protect domestic industries from foreign competition.

Lesser Of Two Evils

A principle that suggests choosing the option that is considered less harmful or less undesirable among two poor choices.

Foreign Imports

Products or services imported from other countries for the purpose of being sold.

Trade Deficit

A scenario in which a country spends more on importing goods than it makes from exporting them, creating a trade imbalance.