Monetary policy undertaken by the Fed:
A. is considered passive policy making when it targets the interest rate.
B. is considered active policy making when it adjusts the money supply.
C. is considered passive policy because only fiscal policy can be active policy.
D. can be either passive or active policy depending on the reason it is undertaking its action.

The third program provides families with $50 in food stamps each week, redeemable for both perishable and nonperishable food. the fourth policy instead provides a family with a box of nonperishable foods each week, worth $50. use two graphs to illustrate that a family may be indifferent between the two programs, but will never prefer the $50 box of nonperishable foods over the $50 in food stamps. state your answer and use a consumer choice model for perishable food and nonperishable food to graphically justify your choice.