ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The goals of all monetary supply is ____
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Lower prices and reduced employment
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Price stability and maximum employment
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Better roads and better military
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All of the these
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Explanation:
Detailed explanation-1: -It is the Federal Reserve’s actions, as a central bank, to achieve three goals specified by Congress: maximum employment, stable prices, and moderate long-term interest rates in the United States (figure 3.1).
Detailed explanation-2: -Price stability is when an economy has an aggregate price level that does not change significantly over a period of time. There are two main types of monetary policy: expansionary monetary policy, which is used to address recessionary economic gaps (deflation, high unemployment, low output)
Detailed explanation-3: -“…the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.”
There is 1 question to complete.