Monetary policy refers to the actions the Federal Reserve takes to manage
A)the money supply and income tax rates to pursue its economic objectives.
B)the money supply and interest rates to pursue its economic objectives.
C)income tax rates and interest rates to pursue its economic objectives.
D)government spending and income tax rates to pursue its economic objectives.

Question

Quizplus · Accepted Answer

Monetary policy involves the Federal Reserve's manipulation of the money supply and interest rates to achieve its economic objectives, such as achieving stable prices and maximum employment. The other options do not accurately describe monetary policy.

Monetary Policy Refers to the Actions the Federal Reserve Takes