Question

multiple select question
select all that apply
which aspects of the u.s. economy does the federal reserve system control?
□ government spending
□ tax rates
□ the money supply
□ interest rates

Explanation:

• Government spending and tax rates are fiscal policy tools controlled by the U.S. Congress and the executive branch, not the Federal Reserve.
• The Federal Reserve (Fed) uses monetary policy to control the money supply (via actions like open market operations) and influence interest rates (such as the federal funds rate, which impacts broader market interest rates).

Answer:

C. The money supply
D. Interest rates