Question

Which of the following are objectives that the Federal Reserve tries to achieve when setting monetary policy? Check all that apply.

A. interest rate stability,
B. economic growth,
C. zero unemployment,
D. zero inflation,
E. price stability

Answer 1

A. interest rate stability,

E. price stability

B. economic growth,

Step-by-step explanation:

Monetary policy is the policy made by the price monetary part of the government to control interest rate and money supply. The aim of monetary policies is to reduce interest rate to ensure price stability and the general stability of the nation's currency. The various types of monetary policy include: Inflation targeting, price level targeting, money supply aggregate targeting, fixed exchange rate targeting and nominal income targeting.