The correct response is monetary policy. Monetary policy is designed to manage the economy by influencing the supply of money and interest rates, which in turn affects asset prices and both short-term and long-term interest rates.
Feds System Tools and Monetary Policy Quick Check
5 of 55 of 5 Items
Question
Which policy affects the prices of assets, and short-term and long-term interest rates?(1 point)
Responses
monetary policy
monetary policy
tax policy
tax policy
fiscal policy
fiscal policy
reserve requirements
1 answer
1 answer