Which of the following refers to actions that shape the economy by influencing interest rates and the supply of money?
A) deficit policy
B) fiscal policy
C) revenue policy
D) monetary policy

Question

Quizplus · Accepted Answer

Monetary policy refers to actions taken by central banks (such as the Federal Reserve in the United States) to influence interest rates and the money supply in order to achieve economic goals such as controlling inflation, promoting economic growth, and stabilizing financial markets. Deficit policy, fiscal policy, and revenue policy refer to government policies related to taxes, spending, and deficits.

Which of the Following Refers to Actions That Shape the Economy