Monetary policy refers to the actions the
A)President and Congress take to manage the money supply and interest rates to pursue their economic objectives.
B)Federal Reserve takes to manage the money supply and interest rates to pursue its macroeconomic policy objectives.
C)President and Congress take to manage government spending and taxes to pursue their economic objectives.
D)Federal Reserve takes to manage government spending and taxes to pursue its economic objectives.

Question

Quizplus · Accepted Answer

Monetary policy refers specifically to the actions taken by the central bank, in the case of the United States, the Federal Reserve, to manage the money supply and interest rates to achieve its macroeconomic policy objectives such as controlling inflation, stabilizing the economy, and promoting economic growth. The other choices are not accurate in describing monetary policy.

Monetary Policy Refers to the Actions the