The use of money and credit controls to influence macroeconomic activity is:
A) Monetary policy.
B) Fiscal policy.
C) Supply-side policy.
D) Classical policy.

Question

Quizplus · Accepted Answer

The use of money and credit controls to influence macroeconomic activity is the definition of monetary policy. Fiscal policy refers to the government's use of taxation and spending to influence the economy, while supply-side policy is aimed at promoting economic growth by increasing productivity and reducing barriers to production. Classical policy refers to the economic theories of Adam Smith and other classical economists, which emphasized a limited role for government intervention in the economy.

The Use of Money and Credit Controls to Influence Macroeconomic