Monetary policy is conducted by the Federal Reserve.Fiscal policy is
A) also conducted by the Federal Reserve.
B) conducted by Congress and the president.
C) conducted by the Supreme Court.
D) conducted by the Department of Defense.
E) conducted only at the state level.

Question

Quizplus · Accepted Answer

Fiscal policy is conducted by Congress and the president, who use government spending and taxation policies to influence economic activity. The Federal Reserve conducts monetary policy, which involves adjusting interest rates and the money supply to achieve its macroeconomic goals. Therefore, choices A, C, D, and E are incorrect.

Monetary Policy Is Conducted by the Federal Reserve