4
QuizMultiple Choice

Economic Policy — Quiz

Question 4 • Personal Finance and Economics

A government's monetary policy is its plan to control

Answer
A
the money supply.
B
taxation and spending.
C
prices.
D
workers' wages.

Explanation

Monetary policy is the set of actions a government or central bank uses to influence the economy by managing the money supply and interest rates. Taxation and government spending are part of fiscal policy, not monetary policy. Therefore, the correct choice is the money supply.

AI-written and checked against the verified answer.

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