A nation controls the size of its money supply through ________ policy.
A) fiscal
B) monetary
C) economic
D) welfare

Question

Quizplus · Accepted Answer

The nation controls the size of its money supply through monetary policy, which involves actions by the central bank (in the United States, the Federal Reserve) to regulate the money supply and interest rates. Fiscal policy refers to government spending and taxation policies, while economic policy is a broader term that encompasses many different areas of policy (including fiscal and monetary policy). Welfare policy refers to programs that provide assistance to low-income individuals and families.

A Nation Controls the Size of Its Money Supply Through