Monetary policy refers to
A)changes in taxes and government spending to ensure sustainable growth, high employment, and low inflation.
B)attempts by the Fed to stabilize the economy and to ensure sufficient money and credit for an expanding economy.
C)the set of regulations used to oversee depository institutions.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by the central bank, such as the Federal Reserve in the US, to regulate the money supply and credit conditions in the economy to promote stable economic growth, low inflation, and full employment. This can involve setting interest rates, controlling the money supply, and engaging in open market operations to influence market conditions. Changes in taxes and government spending fall under fiscal policy, while oversight of depository institutions falls under regulatory policy.

Monetary Policy Refers to