Actions by the Federal Reserve to influence the level of GDP are known as
A) monetary policy.
B) fiscal policy.
C) cyclical policy.
D) procyclical policy.

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by the Federal Reserve to influence the level of GDP by adjusting the money supply and interest rates. Fiscal policy, on the other hand, refers to government actions such as taxation and spending to influence the economy. Cyclical policy and procyclical policy refer to the timing and direction of policy actions in relation to the business cycle, and are not specific to the Federal Reserve.

Actions by the Federal Reserve to Influence the Level of GDP