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.

Question

Zander Frazier

Mathematics

12 August, 14:18

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.

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Answers (2)

Know the Answer?

Cierra Aguirre · Answer 1

c//changes spending levels to affect the economy.

Eden Ramos · Answer 2

Option (c).

Changes spending levels to affect the economy

Explanation:

Monetary policy is defined as a policy derived from the central banks which are mainly the monetary authorities of the country that control the interest rate present in the taxes and other liable short term incomes. Federal Reserve plays a pivotal role in the policy generating ideologies of the monetary funds.

Monetary policy is usually changed when the Federal Reserve changes spending levels to affect the undisturbed economy. This is because it affects the impact of economy on country's base money and hence disturbs the monetary agenda of the country.