Monetary policy refers to the actions taken by a central bank, such as the Federal Reserve in the US, to control the money supply and interest rates in order to influence economic activity. It is used to target certain macroeconomic goals such as inflation, unemployment, and economic growth, and can be used during both times of recession and expansion.

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Monetary Policy Is

Question 17

Multiple Choice

Monetary policy is

A) the use of the money supply to influence the economy.
B) action taken by Congress to influence the economy.
C) only used during times of recession.
D) only used during times of expansion.
E) the use of government spending and taxes to influence the economy.

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