Question

Which policy affects the prices of assets, and short-term and long-term interest rates?(1 point)
Responses

fiscal policy
fiscal policy

reserve requirements
reserve requirements

tax policy
tax policy

monetary policy

Answer 1

The correct response is **monetary policy**. Monetary policy primarily affects the prices of assets and the levels of short-term and long-term interest rates through the management of the money supply and interest rates by a central bank.