Question

Which statement best reflects D.C. Aston’s view of monetary policy?

Options

• It deals only with printing new currency notes.

• It involves influencing aggregate demand through interest rates and credit availability.

• It focuses on balancing the government budget.

• It is concerned only with foreign exchange reserves.

Answer 1

It involves influencing aggregate demand through interest rates and credit availability.

Explanation: 

D.C. Aston defines monetary policy as influencing the level and composition of aggregate demand by manipulating interest rates and the availability of credit.