The economic term used to describe the Federal Reserve's actions to determine the size of the supply of money in the nation and the level of interest rates is
A) monetary policy.
B) fiscal policy.
C) debt policy.
D) recovery technique.
E) recovery guideline.

Question

Quizplus · Accepted Answer

The term used to describe the actions taken by the Federal Reserve to determine the supply of money in the nation and interest rates is called monetary policy. Fiscal policy is the term used to describe the actions taken by the government to influence the economy through taxation and spending. Debt policy is the strategy used by governments to manage their debt. Recovery technique and recovery guideline are not commonly used economic terms.

The Economic Term Used to Describe the Federal Reserve's Actions