Moderate

The Bank of England and the Federal Reserve ?

Correct answer: A. are central banks

  • A. are central banks
  • B. are branches of commercial banks
  • C. use fiscal policy to influence GDP
  • D. loan money to most of LDC commercial banks

Explanation

The Bank of England and the Federal Reserve are the central banks of the United Kingdom and the United States, respectively. They conduct monetary policy, not fiscal policy, which is handled by governments through taxation and spending.

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About Macroeconomics

The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.

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