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Monetary policy refers to changes in which of the following?Multiple select question.Credit availabilityTax ratesMoney supplyGovernment spendingInterest rates

Question

Monetary policy refers to changes in which of the following?Multiple select question.Credit availabilityTax ratesMoney supplyGovernment spendingInterest rates

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Solution

Monetary policy refers to changes in:

  1. Credit availability
  2. Money supply
  3. Interest rates

Monetary policy does not directly involve changes in tax rates or government spending. Those fall under fiscal policy, which is a different aspect of economic policy.

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