Question

The Federal Reserve uses various measures to change the money supply and encourage economic activity. This is referred to as

A) fiscal policy.
B) monetary policy.
C) demand economics.
D) supply side economics.

Answer 1

Monetary policy

Step-by-step explanation:

Answer 2

B) monetary policy.

Step-by-step explanation:

The federal reserve is a central bank and whenever a central bank uses various measures to change the quantity of money or money supply it is regarded as monetary policy. The fed can change money supply by changing interest rates or quantitative easing and all of this comes under monetary policy.