Monetary Policy Involves Changes in the Government's Revenues and Expenditures

question 16

True/False

Monetary policy involves changes in the government's revenues and expenditures to stimulate a slow economy or dampen a growing economy that is in danger of overheating and causing inflation.

---

Definitions:

Price

The amount of money required to purchase a good or service, determined by factors such as supply and demand.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a specific price.

Quantity Demanded

The sum of a good or service desired by consumers at a certain price within a set period.

Price Decrease

A reduction in the cost at which goods or services are sold in the market.