Monetary policy refers to changes in which of the following?Multiple select question.Credit availabilityTax ratesMoney supplyGovernment spendingInterest rates

To answer the question regarding monetary policy, let’s explore the key components involved:

Definition of Monetary Policy

Monetary policy primarily involves managing the economy by controlling the money supply and interest rates. It is implemented by a country's central bank.

Key Components of Monetary Policy

1. Credit Availability: While monetary policy does influence how easily credit is available through interest rates, it is not directly synonymous with monetary policy.
2. Tax Rates: These are primarily determined by fiscal policy, not monetary policy.
3. Money Supply: This is a core component of monetary policy. Central banks manipulate the money supply through various means (e.g., open market operations).
4. Government Spending: This is associated with fiscal policy rather than monetary policy.
5. Interest Rates: Central banks set key interest rates to influence overall economic activity. This is a fundamental aspect of monetary policy.

Final Selection

Based on the above analysis, the correct answers regarding changes influenced by monetary policy are:

1. Money Supply
2. Interest Rates

Monetary policy does not directly deal with credit availability, tax rates, or government spending.