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In order to achieve the target for the nominal interest rate established by the monetary policy rule, the central bank adjusts:
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In order to achieve the target for the nominal interest rate established by the monetary policy rule, the central bank adjusts:

User Starwed
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Answer: C. the money supply.

Step-by-step explanation:

The Money Supply in an economy can be adjusted to influence interest rates due to the indirect relationship that exists between them. This means that when there is a high money supply, interest rates are lower and vice versa.

The Central Bank controls how much money is in the economy by using Open Market operations that buy or sell government securities as well as reserve requirements on banks.

User Haron
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