Gradually over the last two decades,________ policy has emerged as the major stabilization policy tool in the United States.

Question

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Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates in order to achieve economic goals such as price stability, full employment, and economic growth. In the United States, the Federal Reserve has been using monetary policy as the main tool for stabilizing the economy since the 1990s. Fiscal policy (B) refers to the use of government spending and taxation to influence the economy, but it has become less important due to political constraints and concerns about budget deficits. Exchange rates (C) refer to the value of one currency in relation to another, and while they play a role in international trade and capital flows, they are not a primary stabilizing policy tool in the domestic economy. Deregulatory policy (D) refers to the removal of government regulations and restrictions on business activity, but it is not a stabilization policy tool.

Gradually Over the Last Two Decades,________ Policy Has Emerged as the Major