A policy that results in slow and steady growth of the money supply is an example of
A)an "easy" monetary policy.
B)a "passive" monetary policy.
C)a "practical" monetary policy.
D)an "active" monetary policy.

Question

Quizplus · Accepted Answer

A policy that results in slow and steady growth of the money supply is an example of a "passive" monetary policy where the central bank takes a hands-off approach and allows the market forces to determine the money supply. It is a more conservative approach compared to an "easy" or "active" monetary policy where the central bank actively intervenes in the market to adjust the money supply in response to economic conditions. A "practical" monetary policy is not a commonly used term in economics.

A Policy That Results in Slow and Steady Growth of the Money