A set of economic policy tools designed to regulate the amount of money in the economy (in circulation and in deposits) is known as ______ policy.

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by a central bank to regulate the money supply and achieve economic goals such as controlling inflation, promoting economic growth, and stabilizing employment. This can be done through various measures such as adjusting interest rates, buying or selling government securities, or changing reserve requirements for banks. Fiscal policy, on the other hand, involves the government's use of taxes and government spending to achieve similar economic goals. Social welfare policy refers to government programs and policies designed to provide assistance to individuals and families in need.

A Set of Economic Policy Tools Designed to Regulate the Amount