question 3 (1 point)\nlisten\nthe goal of monetary policy is to...\n a) ensure liquidity in the banking…

question 3 (1 point)\nlisten\nthe goal of monetary policy is to...\n a) ensure liquidity in the banking system.\n b) bring inflation down to 0%.\n c) reduce interest rates throughout the business cycle.\n d) promote sustained economic growth with an acceptable level of inflation.

question 3 (1 point)\nlisten\nthe goal of monetary policy is to...\n a) ensure liquidity in the banking system.\n b) bring inflation down to 0%.\n c) reduce interest rates throughout the business cycle.\n d) promote sustained economic growth with an acceptable level of inflation.

Answer

Brief Explanations:

Monetary policy aims to balance economic growth and inflation. Aiming for 0% inflation (b) is not practical as some inflation is normal in a growing economy. Reducing interest - rates throughout the business cycle (c) is not a general goal as rates need to be adjusted according to economic conditions. Ensuring banking - system liquidity (a) is a part of central - bank operations but not the overarching goal. The main goal is to promote sustainable economic growth while keeping inflation at an acceptable level.

Answer:

d) Promote sustained economic growth with an acceptable level of inflation.