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Economics
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11 May 2019

The economic policy of changing the quantity of money to change the interest rate that affects the overall spending in the economy, is known as:

a) the monetary policy

b) the fiscal policy

c) free-market policy

d) trickle down policy

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Irving Heathcote
Irving HeathcoteLv2
13 May 2019

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Related questions

The use of government taxes and spending to alter economic outcomes is known as ________________.
a. Monetary policy
b. Fiscal policy
c. Income policy
d. Foreign-trade policy
Changing the supply of money to expand or contract economic activity is known as what?Ā 
Ā 
A)legislative policy.
B)monetary policy.
C)presidential policy.
D)congressional policy.
E)judicial policy
Ā 

1. Lowering interest rates is a common monetary policy tool used to;

A. stimulate economic growth.

B.lower inflation.

C.decrease government borrowing costs.

D.none of these

2. Lower interest rates can also;

A.push prices lower.

B.push prices were higher.

C.lead to stagnation.

D.none of these

3. When central banks increase the money supply and take steps to lower interest rates it is known as;

A.expansionary monetary policy.

B.an inflation hawk stance.

C.contractionary monetary policy.

D.expansionary fiscal policy.

4. When Governments increase expenditures it is known as;

A.expansionary fiscal policy.

B.Contractionary fiscal policy.

C.contractionary monetary policy.

D.expansionary monetary policy.

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