The Federal Reserve conducts the nation's monetary policy by managing the level of short-term interest rates and influencing the
availability and cost of credit in the economy. Monetary policy directly affects interest rates; it indirectly affects stock
prices,
wealth, and
currency exchange rates. Through these channels, monetary policy influences spending, Investment
,
production
, employment, and
inflation
in the United States. Effective monetary policy complements fiscal policy to support economic growth.
"Conducting Monetary Policy," The Federal Reserve
Based on the text, how does US monetary policy support prosperity?
OA by ensuring full employment
OB by managing economic growth
OC by limiting fluctuations of the stock market
OD. by encouraging high levels of government spending