The use of interest rates to control the money supply in order to regulate the economy is known as ______ policy.

Question

Quizplus · Accepted Answer

Monetary policy involves the use of interest rates to control the money supply in order to regulate the economy. Budgetary policy involves government spending and taxation, fiscal policy involves the use of government spending and taxation to influence the economy, regulatory policy involves government regulations on industries and businesses, and antitrust policy involves measures to prevent monopolies and promote competition.

The Use of Interest Rates to Control the Money Supply