Question

Select all that apply

Which of the following aspects of the economy are directly controlled by the Fed?
A. Money demand
B. Price levels
C. Money supply
D. Interest rates

Answer 1

The aspects of the economy directly controlled by the Fed are the money supply and interest rates.

Step-by-step explanation:

The aspects of the economy that are directly controlled by the Fed are:
C. Money supply - The Federal Reserve has the power to increase or decrease the money supply through their monetary policy actions, such as buying or selling government bonds through open-market operations.
D. Interest rates - The Federal Reserve can influence interest rates, specifically the federal funds rate, by engaging in operations to nudge the rate up or down.