Which of the following would be classified as monetary policy? O The federal government cuts taxes to stimulate the economy. O The federal government passes tax cuts to encourage firms to reduce air pollution. O A state government increases taxes to decrease consumption of sugary soft drinks. O States increase taxes to fund education.

MACROECONOMICS FOR TODAY
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Chapter16: Monetary Policy
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Which of the following would be classified as monetary policy?
O The federal government cuts taxes to stimulate the economy.
O The federal government passes tax cuts to encourage firms to reduce air
pollution.
O A state government increases taxes to decrease consumption of sugary soft
drinks.
O States increase taxes to fund education.
O The Federal Reserve cuts interest rates to stimulate the economy.
Transcribed Image Text:Which of the following would be classified as monetary policy? O The federal government cuts taxes to stimulate the economy. O The federal government passes tax cuts to encourage firms to reduce air pollution. O A state government increases taxes to decrease consumption of sugary soft drinks. O States increase taxes to fund education. O The Federal Reserve cuts interest rates to stimulate the economy.
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