The Fed uses monetary policy in an effort to change _______ and shift the aggregate _______ curve.
A) Interest rates;demand
B) Interest rates;supply
C) Taxes;demand
D) Taxes;supply

Question

Quizplus · Accepted Answer

The Fed uses monetary policy tools, such as adjusting interest rates, to influence borrowing and spending behavior, which affects the overall demand in the economy. By changing interest rates, the Fed attempts to shift the aggregate demand curve to stimulate economic growth or control inflation. Therefore, option A is the correct answer.

The Fed Uses Monetary Policy in an Effort to Change