Question

Monetary policy is:

Group of answer choices:
O the expenditures and taxation policy that the government pursues to achieve particular macroeconomic goals.
O the spending and saving policy that consumers pursue to achieve particular macroeconomic goals.
O the investment policy that businesses pursue to achieve particular macroeconomic goals.
O the policy concerning changes in the money supply that is pursued to achieve particular macroeconomic goals.
O the spending policy that the Treasury pursues to achieve particular macroeconomic goals.

Answer 1

The correct answer is letter "D": the policy concerning changes in the money supply that is pursued to achieve particular macroeconomic goals.

Step-by-step explanation:

Monetary policy is the actions that a central bank takes to control the money supply of a nation and the broader economy. The Federal Reserve (Fed) sets monetary policy in the U.S. The Fed tries to ensure that the money supply does not grow too rapidly causing excessive inflation, either affecting economic growth by going too slowly.