The goal of monetary policy is to O A. Set currency exchange rates B. Set money supply O C. Reduce the unemployment rate O D. Stimulate economic growth

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 8SCQ: A central bank can allow its currency to fall indefinitely, but it cannot allow its currency to rise...
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QUESTION 9
The goal of monetary policy is to
O A. Set currency exchange rates
O B. Set money supply
C. Reduce the unemployment rate
O D. Stimulate economic growth
Transcribed Image Text:QUESTION 9 The goal of monetary policy is to O A. Set currency exchange rates O B. Set money supply C. Reduce the unemployment rate O D. Stimulate economic growth
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Monetary policy is the control of the quantity of money available in an economy. So, could option B be correct. If not, why?

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