Monetary Policy Refers to the Actions the Federal Reserve Takes

question 243

Multiple Choice

Monetary policy refers to the actions the Federal Reserve takes to manage

• A)the money supply and income tax rates to pursue its economic objectives.
• B)the money supply and interest rates to pursue its economic objectives.
• C)income tax rates and interest rates to pursue its economic objectives.
• D)government spending and income tax rates to pursue its economic objectives.

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Definitions:

Payroll Taxes

Taxes imposed on employers and employees, used to fund social security, Medicare, and other government programs.

Age Discrimination in Employment Act

A U.S. federal law that prohibits employment discrimination against individuals 40 years of age or older.

Seniority System

An employment system where decisions about promotion, pay, layoffs, and other working conditions are based on the length of time an employee has worked for an employer.

Equal Pay

The legal or ethical principle requiring that employees be paid the same wage for similar work regardless of gender, age, ethnicity, or other non-performance related factors.