A major strength of monetary policy ismultiple choicethe autonomy of the Fed.its speed and flexibility.its long term consequences.the rule used to manage the economy

If the economy appears to be operating at potential output, with stable prices and a low level of unemployment, the Fed would be inclined to chooseMultiple Choicea restrictive monetary policy.an expansionary monetary policy.a tight money policy.a neutral monetary policy.

Monetary policy affectsQuestion 5Answera.all of the above.b.interest rates.c.inflation.d.business cycles.

The basic objective of monetary policy is tomultiple choiceincrease employment and stabilize exchange rates.eliminate inflation and lower interest rates.maintain steady exchange rates and lower inflation.assist the economy in achieving a full-employment, non-inflationary level of total output.

Monetary policy can be defined as a central bank's changing of the money to influence rates and assist the economy in achieving price , full and economic .

Monetary policy has certain objectives except.......Question 2Answera.sustaining exchange rate stabilityb.reducing employment growthc.promoting outputd.checking rate of inflation