The difference between fiscal policy and monetary policy is that:
A) fiscal policy is a macroeconomic policy but monetary policy is a microeconomic policy.
B) monetary policy is a macroeconomic policy but fiscal policy is a microeconomic policy.
C) fiscal policy involves regulation of natural monopolies but monetary policy involves the provision of public goods.
D) monetary policy involves regulation of the money supply but fiscal policy involves government spending and taxing.
E) fiscal policy involves the promotion of competition but monetary policy involves collecting money to pay for taxes.
Correct Answer:
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