Monetary policy refers to the actions the Federal Reserve takes to manage

a. the money supply and income tax rates to pursue its economic objectives.
b. the money supply and interest rates to pursue its economic objectives
c. income tax rates and interest rates to pursue its economic objectives
d. government spending and income tax rates to pursue its economic objectives


b. the money supply and interest rates to pursue its economic objectives

Economics

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Refer to the figure below. If Column Cruises offers reduced rates, and Row Resorts keeps its rates high, then Row Resorts will earn ________, and Column Cruises will earn ________.

A. 300; 300 B. 10; 500 C. 500; 10 D. 50; 50

Economics

The price elasticity of demand for Stork ice cream is -4. Suppose you're told that following a price increase, quantity demanded fell by 10 percent. What was the percentage change in price that brought about this change in quantity demanded?

A) 40 percent B) 25 percent C) 2.5 percent D) 0.4 percent

Economics

The law of demand states that, ceteris paribus, an increase in

a. price causes quantity demanded to increase. b. price causes quantity demanded to decrease. c. quantity demanded causes price to increase. d. quantity demanded causes price to decrease.

Economics

Which of the following would be most likely to increase consumption spending?

a. A higher interest rate b. A drop in stock prices c. A reduction in consumer credit card debt d. The expectation of lower future prices e. An increase in the income tax rate

Economics