How does the fed affect monetary policy?
a) it regulates the supply of money
b) it determines tax rates
c) it maintains the gold standard
d) it evaluates financial business practices

A) it regulates the supply of money.

Explanation:

When the government implements a monetary policy, it has influence over economic activity, particularly through the manipulation of money and credit supplies as well as the alteration of interest rates. The most common purposes for carriying out this policy are:

Before the twentieth century, monetary policy was broadly considered almost useless to excercise influence over the economy. This changed after WWII, when governments started implementing measures to decrease inflation by regulating money supply.

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