Monetary policy affects
A) interest rates.
B) inflation.
C) business cycles.
D) all of the above.

Question

Quizplus · Accepted Answer

Monetary policy can impact interest rates, inflation, and business cycles. By adjusting the money supply and interest rates, central banks can control the cost and availability of credit, which can impact inflation and the broader economy. Changes in interest rates can also impact consumer and business spending, which can affect business cycles.

Monetary Policy Affects