Question

_____ is when the central bank uses money supply and interest rates to affect a country's economy.

Answer 1

Monetary Policy. Monetary policy is implemented by a central bank, fiscal policy is usually by a government.

Answer 2

Monetary policy- is when the central bank uses money supply and interest rates to affect a country's economy.

This policy is implied by central banks to regulate the currency. This policy helps to control the money and credit supply to the general public.

There are two types of Monetary Policy:

Expansionary Monetary Policy and Contractionary Monetary Policy.