what instrument macro-economics use to achieve its objectives? a bit details
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Therefore, one of the objectives of macroeconomic policy is to ensure (relative) price level stability. This goal prevents not only economic fluctuations but also helps in the attainment of a steady growth of an economy.
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The main policy instruments available to meet macroeconomic objectives are:
Monetary policy –changes to interest rates, the supply of money and credit and also changes to the value of the exchange rate.
Fiscal policy – changes to government taxation, government spending and borrowing
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