Question

The United States relies most on which of the following policies?

Answer 1

The answer is d. monetary policy.  This is because the economy goes up when the cost of credit decreases and this leads to more people and businesses to borrow money. This is done through open market operations where there is competition among primary security dealers.  The discount rate where its change can give people an idea about what the Government’s plan will be and the requirements that determine how much money banks can produce via loans and investments.