When a central bank influences the growth of the money supply, it is carrying out monetary policy fiscal policy

The correct answer is: "monetary policy".

The monetary policy is the mechanism through which the central bank is able to indirectly influence the economic output and its growth trends, by changing the amount of money in circulation in the economy, the so-called money supply.

The are several instruments that the monetary authorities can use to modify the money supply levels: changing the interest rate, modifying the mandatory coefficient of reserves of the banking system, purchasing or selling public debt, etc.

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