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

Question

Quizplus · Accepted Answer

The action of setting interest rates and managing the money supply is the responsibility of the central bank in a country, which is part of monetary policy. Fiscal policy involves changes to government spending and taxation, which can also affect overall spending in the economy, but it is not directly related to setting interest rates or controlling the money supply. Investment and the stock market are related to financial markets, but they do not directly refer to the actions of the central bank in managing monetary policy.

Setting Interest Rates and the Money Supply in an Effort