10
QuizMultiple Choice

Economic Policy

Question 10 • IL-Economics

A government's monetary policy is its plan to control

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

Explanation

Monetary policy is the set of actions a government or central bank uses to influence the amount of money circulating in the economy, often by changing interest rates or managing the money supply. Taxation and spending are part of fiscal policy, so the correct choice is “the money supply.”

AI-written and checked against the verified answer.