In addition to fiscal policy, the other main tool used to affect aggregate demand is
A)trade policy.
B)industrial policy.
C)planning policy.
D)monetary policy.

Question

Quizplus · Accepted Answer

The other main tool used to affect aggregate demand is monetary policy, which involves using the central bank's control over the money supply and interest rates to stimulate or restrain spending and investment. This can be done through actions such as adjusting the discount rate, open market operations, and reserve requirements.

In Addition to Fiscal Policy, the Other Main Tool Used