Apply concepts how might the proper use of
monetary policy affect economic stability?

Proper use of monetary policy positively affects economic stability.  

Explanation:

Monetary policy generally aims to achieve economic growth and stability. Monetary policy is very important to keep a check on the economy and prevent inflation. It was after the economic crisis in the US brought about by the Second World War, the importance of monetary policy was realised.  

Formulation of monetary policy is the function of Federal Reserve System or Fed which is the country’s central bank. Instruments used by Fed to control the supply of money are open market operations, discount rates and reserve requirements.

Fed buys and sells government securities in open market operations. Discount rate is the rate at which money is lent to commercial banks. Fed changes this discount rate according to the state of the economy. When the monetary policy is formulated properly economic stability can be achieved.

manifest functions are the recognized and intended consequences of any social pattern, while latent functions are those unrecognized and unintended consequences. to analyze the manifest functions of any social institution, we have to study its contribution to the continuation of a group, community, or society.

the factors that the economies of the muslim empires prosper were:

1- land trade routes-located between three continents  

2- sea trade routes

trade contributed to the spread of muslim empires, and with that islamic culture led to a growing feeling of internationalism resulted in the transfer of technology, science, and other cultural forms.