Question

Governments use monetary policy in order to:

A. prevent inflation and control the price of goods in the country
B. punish citizens who refuse to pay taxes and follow regulations
C. make sure businesses do not harm citizens or the environment
D. reduce taxes on the country's most successful businesses

Answer 1

A. prevent inflation and control the price of goods in the country

Step-by-step explanation:

• A monetary policy is the policy of the government that is aimed by the central banks to control the supply of money and attain sustainable economic growth and development.

• It aims to control interest rates and ensures price stability. It, later on, contributes to the formation of GDP of the nation, exchange rates, and unemployment of the nation.