Question

Which best describes what a central bank uses monetary policy to do?

Answer 1

Answer:

Steer the economy away from the recession and towards growth

Explanation:

The monetary policy is the policy that adapts by the authority of the monetary. It depends on the interest rate that is payable on very short periods. There is another policy named fiscal policy that depends on government taxation and the borrowing of government. This policy manages the cycle of the financial swings such as the recession. The recession is for manipulation of the money supply.

Monetary economics provides economic insight into optimal crafting. The monetary policy is different from the fiscal policy.