Monetary policy primarily aims to control which of the following economic factors?

Monetary policy is primarily concerned with managing the money supply and interest rates to influence the economy, with the key objectives being to control inflation and maintain currency stability. When central banks adjust the money supply, they can affect interest rates, which in turn can influence investment and spending in the economy.

Controlling inflation is crucial as high inflation erodes purchasing power and can lead to uncertainty in the economy. Currency stability ensures that the value of the currency remains consistent, which is vital for maintaining confidence among consumers and investors both domestically and internationally. A stable currency helps to facilitate trade and investment, contributing to overall economic growth.

While government spending, unemployment rates, and international trade balance are important aspects of the economy, they are typically influenced more directly by fiscal policy or external market forces rather than monetary policy itself. Therefore, the primary focus of monetary policy on inflation and currency stability makes that answer accurate within the context of macroeconomic objectives.