Federal governments sometimes use the lever of monetary policy to:
A)help control business cycles
B)help the banks with loaning money to the poor
C)reward areas with low unemployment
D)raise interest rates to stimulate sectors of the economy

Question

Quizplus · Accepted Answer

Monetary policy involves adjusting the money supply and interest rates to achieve economic goals such as controlling inflation, stabilizing business cycles, and promoting economic growth. Therefore, federal governments often use the lever of monetary policy to help control business cycles.

Federal Governments Sometimes Use the Lever of Monetary Policy To