Which of the following is a correct statement?
A) Fiscal policy is the use of tax and spending policies by Congress and the president.
B) Fiscal policy involves the control of the money supply by the Federal Reserve Bank.
C) Monetary policy involves the control of the money supply by Congress and the president.
D) Monetary policy is the use of tax and spending policies by the Federal Reserve Bank.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence the economy, and it is controlled by Congress and the president. Monetary policy, on the other hand, involves the management of the money supply by the Federal Reserve Bank. Option B and C are incorrect because they either confuse or have the wrong institution responsible for policy control. Option D conflates the responsibilities of the Federal Reserve Bank with that of the government.

Which of the Following Is a Correct Statement