The Means by Which the Federal Reserve Influences Economic Conditions

question 67

Multiple Choice

The means by which the Federal Reserve influences economic conditions in the United States is called ____.

• A) Deficit spending
• B) Fiscal policy
• C) Monetary policy
• D) Gross domestic product
• E) Business cycle

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Definitions:

Distribution

The way in which something is shared out among a group or spread over an area.

Consumption

The process by which goods and services are utilized by individuals or groups to satisfy personal or collective needs or desires.

Production

The process of creating, manufacturing, or producing goods, services, or information, often involving a combination of labor, materials, and capital.

Legal entity

An organization or structure that is recognized by the law as capable of rights and duties.