Question

Governments monetary authorities attempt to provide the amount of money needed for the particular volume of business activity that will promote what?

Answer 1

Governments use monetary policy to control the money supply to achieve macroeconomic goals such as stable growth, low unemployment, and low inflation.

Step-by-step explanation:

Government monetary authorities aim to match the supply of money with the volume of business activity to promote macroeconomic objectives such as growth in the standard of living, low unemployment, and low inflation. The central bank, such as the Federal Reserve in the United States, conducts monetary policy to influence these outcomes by affecting bank lending, interest rates, and financial capital markets. Through tools like adjusting the money supply and influencing interest rates, the central bank attempts to maintain economic stability, support growth, and combat inflation, thus fostering an environment where the economy can thrive.