Changing interest rates is an example of _____ policy.

Question

Quizplus · Accepted Answer

Changing interest rates is a tool used by central banks to implement monetary policy, making "monetary" the correct choice. Fiscal policy refers to the use of government spending and taxation to influence the economy, tax policy refers specifically to the government's approach to taxation, and exchange rate policy refers to how a government manages its currency in relation to other currencies.

Changing Interest Rates Is an Example of _____ Policy