_________ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money.
A)Fiscal policy
B)Monetary policy
C)Revenue policy
D)Deficit policy

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by the Federal Reserve to achieve its macroeconomic goals of price stability, full employment, and economic growth. This is done through the manipulation of interest rates and the money supply. Fiscal policy, on the other hand, involves changes in government spending and taxation levels to influence the economy. Revenue policy and deficit policy are not commonly used terms to describe government economic policies.

_________ Refers to Federal Reserve Decisions That Shape the Economy