The means by which the Federal Reserve influences economic conditions in the United States is called ____.
A) Deficit spending
B) Fiscal policy
C) Monetary policy
D) Gross domestic product
E) Business cycle

Question

Quizplus · Accepted Answer

The Federal Reserve uses monetary policy to influence economic conditions by adjusting interest rates, controlling the money supply and managing inflation. Choices A, B, D, and E are unrelated to the Federal Reserve's methods of influencing economic conditions.

The Means by Which the Federal Reserve Influences Economic Conditions