Setting interest rates and the money supply in an effort to change overall spending in is use of:

Question

Quizplus · Accepted Answer

This is a description of monetary policy, where a central bank adjusts interest rates and the money supply in order to influence spending and inflation. Fiscal policy, on the other hand, involves government spending and taxation to achieve economic goals. Investment and the stock market are related to financial markets, but are not specifically tied to setting interest rates and the money supply.

Setting Interest Rates and the Money Supply in an Effort