Which of the following is a principal tool used by government organizations to constrain the activities of businesses and consumers? Enacting monetary policy Initiating negative social media.campaiges In overseeing the economy, the goals of the federal government are economic and a high level. The two principal policy tools that the federal government uses to manage economic conditions are monetary policy and fiscal policy. is used to control the size of the money supply to stimulate or moderate business activity levels in the economy. In contrast, uses government spending and taxation to do the same. What policy tools can be used to increase or decrease an economy's activity level? If the federal government wants to increase production and purchasing activity levels in the economy, which of the following policy tools could it use? Check all that apply, Decrease the money supply. Reduce tax rates. Decrease government spending. Increase government spending