The Effect of Money on the Economy Is Called ________

question 62

Multiple Choice

The effect of money on the economy is called ________.

• A) monetary supply
• B) monetary policy
• C) fiscal policy
• D) monetary demand

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Definitions:

Incentives

Factors, either monetary or non-monetary, that motivate individuals or businesses to act in a certain way.

Scarce

A characteristic of resources that are limited in availability, which can lead to competition for their use.

Freely Available

Resources, information, or products that can be accessed or obtained without any payment or restrictions.

Economic Choice

Economic choice involves making decisions on the allocation of scarce resources among competing needs or desires to maximize benefits and utility.