Which of the following is an example of monetary policy?
A)decreasing federal spending
B)increasing taxes on wealthy Americans
C)lowering interest rates
D)lowering state property and sales tax

Question

Quizplus · Accepted Answer

Lowering interest rates is an example of monetary policy because it involves the Federal Reserve adjusting the supply of money and credit in the economy to influence interest rates and encourage borrowing and spending.

The other options listed are examples of fiscal policies, which involve changes in government spending and taxation. Decreasing federal spending and increasing taxes on wealthy Americans would be contractionary fiscal policies aimed at reducing government deficits or debt. Lowering state property and sales tax would be a state-level fiscal policy aimed at raising revenue or stimulating spending in that specific state.

Which of the Following Is an Example of Monetary Policy