Unlike fiscal policy, monetary policy:
A) must be initiated by the president or by Congress in the United States.
B) includes taxation and spending actions, such as increasing government spending or encouraging private spending.
C) consists of government actions intended to spark or diminish consumption.
D) consists of manipulations in the interest rates, banking rules, and the volume of currency in a country.

Question

Quizplus · Accepted Answer

Monetary policy is conducted by a country's central bank (in the U.S., the Federal Reserve) and involves managing the economy through changes in the money supply and interest rates. It does not involve taxation or government spending, which are components of fiscal policy.

Unlike Fiscal Policy, Monetary Policy