ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT one of the three goals of Monetary Policy?
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Moderate long term interest rates
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Cut taxes
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Maximize employment
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Stabilize prices
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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: -Balancing the federal budget. Balancing the federal budget is not one of the main goals of monetary policy. Monetary policy is implemented by central banks to promote economic stability and growth within the economy.
Detailed explanation-3: -The correct answer is A) fair wages. Fair wages are not a goal of monetary policy.
Detailed explanation-4: -The Monetary Policy Committee is not involved in setting the inflation target rate.
There is 1 question to complete.