Objective of Monetary Policy

In the context of macroeconomic policy, monetary policy is primarily concerned with controlling the supply of money in an economy. This is typically managed by a country's central bank.

A key tool of monetary policy is the adjustment of interest rates. When a central bank lowers interest rates, this can stimulate economic activity by making borrowing cheaper, which encourages spending and investment.

In contrast, fiscal policy involves government spending and tax policies to influence economic conditions. It is aimed at managing economic cycles by adjusting spending levels and tax rates.

Given this context, which of the following statements best describes the primary objective of monetary policy?