Question
Changes in monetary policy occur when the Federal Reserve
A: adjusts business laws to affect the money supply.
B: changes taxation levels to affect the economy.
C: changes spending levels to affect the economy.
D: adjusts interest rates to affect the money supply.
A: adjusts business laws to affect the money supply.
B: changes taxation levels to affect the economy.
C: changes spending levels to affect the economy.
D: adjusts interest rates to affect the money supply.
Answers
GPT-4o mini
The correct answer is:
D: adjusts interest rates to affect the money supply.
The Federal Reserve changes monetary policy primarily by adjusting interest rates to influence economic activity and the money supply.
D: adjusts interest rates to affect the money supply.
The Federal Reserve changes monetary policy primarily by adjusting interest rates to influence economic activity and the money supply.