Monetary policy refers to Multiple Choice the government's plans for taxing and spending. the value of a country's currency. the actions of a central bank to effect interest rates and the supply of money. the monthly changes in consumer prices over the course of a year.
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Step 1: Monetary policy refers to the actions taken by a central bank to manage the money supply and credit conditions in an economy. Show more…
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Select the answer that makes each statement correct. When the government changes either its spending or tax policy to pursue economic objectives, it has changed its financial policy. political policy. monetary policy. contractionary policy. expansionary policy. fiscal policy. Changing the amount of money in circulation to pursue economic objectives changes the
Jennifer S.
Monetary policy is a term used to refer to the actions of central banks to achieve macroeconomic policy objectives such as price stability, full employment, and stable economic growth. In the United States, the Congress established maximum employment and price stability as the macroeconomic objectives for the Federal Reserve. They are sometimes referred to as the Federal Reserve's dual mandate. Apart from these overarching objectives, the Congress determined that the operational conduct of monetary policy should be free from political influence. As a result, the Federal Reserve is an independent agency of the federal government. Fiscal policy is a broad term used to refer to the tax and spending policies of the federal government. Fiscal policy decisions are determined by the Congress and the Administration. The Federal Reserve plays no role in determining fiscal policy. From the Board of Governors of the Federal Reserve System. 1. According to this reading, fiscal policy decisions are: A) not handled by the Federal Reserve B) used to help make prices more stable C) enacted to ensure full employment in the United States D) determined by the government 2. Which of these would be part of the dual mandate of the Federal Reserve? A) Balancing imports and exports B) Keeping inflation rates at 2% per year C) Raising the minimum wage to adjust with inflation D) Increasing the number of professional jobs each year
Donna D.
The action of the government relating to its expenditures, transfers and taxes is called the monetary policy.
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