If the central bank increases the money supply, it is conducting
A) fiscal policy.
B) supply-side policy.
C) monetary policy.
D) incomes policy.

Question

Quizplus · Accepted Answer

Increasing the money supply is a tool used by central banks in monetary policy to influence the economy by affecting interest rates, credit availability, and inflation. Fiscal policy refers to government actions related to taxation and spending, while supply-side policy focuses on policies that increase the production and supply of goods and services. Incomes policy refers to government intervention in wages and prices.

If the Central Bank Increases the Money Supply, It Is