What is the primary goal of monetary policy in the context of robotics and autom
Practice Questions
Q1
What is the primary goal of monetary policy in the context of robotics and automation?
To increase employment in traditional sectors
To control inflation and stabilize the economy
To promote technological advancements
To reduce government spending
Questions & Step-by-Step Solutions
What is the primary goal of monetary policy in the context of robotics and automation?
Step 1: Understand what monetary policy is. It refers to the actions taken by a country's central bank to manage the economy by controlling the money supply and interest rates.
Step 2: Recognize the primary goals of monetary policy, which are to control inflation (the rate at which prices rise) and stabilize the economy (keeping it healthy and growing).
Step 3: Consider how robotics and automation can change the economy. They can create new jobs but also replace some traditional jobs, leading to economic shifts.
Step 4: Realize that as robotics and automation disrupt the economy, it becomes important for monetary policy to adapt to these changes to maintain stability and control inflation.
