Answer :
The best monetary policy would be there is no obviously correct policy, unless you can specify your goals.
- The Federal Reserve's actions and communications to advance maximum employment, stable prices, and moderate long-term interest rates—the three economic objectives that the Congress has directed the Federal Reserve to pursue—combine to form monetary policy in the United States.
- The actions performed by a nation's central bank to manage the money supply in order to maintain economic stability are referred to as monetary policy.
- For instance, policymakers use instruments like interest rates, reserves, bonds, etc. to manage the flow of money in order to increase employment, GDP, and price stability.
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