Stimulating or contracting the economy via changes in interest rates is an example of the government's use of:

Question

Quizplus · Accepted Answer

Changes in interest rates are a tool used by the government to influence monetary policy, which involves controlling the supply of money and credit in the economy to achieve specific goals such as controlling inflation or boosting economic growth. Fiscal policy involves changes in government spending and taxation, while industrial relations policy relates to the regulation of workplace relations and welfare policy deals with social welfare programs.

Stimulating or Contracting the Economy Via Changes in Interest Rates