What are the goals of monetary policy? maximum employment and stable prices zero unemployment and zero inflation zero unemployment and stable prices maximum employment and zero inflation
What are the goals of monetary policy? maximum employment and stable prices zero unemployment and zero inflation zero unemployment and stable prices maximum employment and zero inflation
Chapter1: Making Economics Decisions
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Problem 1QTC
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Transcribed Image Text:What are the goals of monetary policy?
maximum employment and stable prices
zero unemployment and zero inflation
zero unemployment and stable prices
maximum employment and zero inflation
The Federal Reserve seeks to achieve these goals by
choosing between maximum employment and stable prices in the long run.
maintaining both the money supply and short-term interest rates at low levels.
keeping the growth rate of money consistent with the growth rate of the natural rate of output.
targeting short-term interest rates and the money supply.
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