Question

Monetary policy is the _____.

action the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy

Federal Reserve committee that makes key decisions about interest rates and the growth of the U.S. money supply

responsibility of the seven-member board that oversees the Federal Reserve System

purpose of a Federal Reserve District bank

Answer 1

Broadly speaking, there are two types of monetary policy, expansionary and contractionary. Expansionary monetary policy increases the money supply in order to lower unemployment, boost private-sector borrowing and consumer spending, and stimulate economic growth.

Answer 2

Action the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy.

Hope this helps!