Question

Countries use monetary policy in order to:

O A. increase investment in specific industries.
O B. ensure economic equality for all citizens.
O c. manage the supply of money that is available.
O D. encourage companies to import goods.

Answer 1

O c. manage the supply of money that is available.

Step-by-step explanation:

Monetary policies are deliberate macroeconomic initiatives undertaken by the Federal Reserve to control the money supply in the economy. The Fed has several monetary policies it can use to achieve the desired results. Some policies increase the money supply( Expansionary monetary policies ). Others reduce the money supply in the economy ( Contractionary monetary policies).

Monetary policies are used together with fiscal policies to achieve the overall macroeconomic objectives.