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What Is the Difference Between Monetary Policy and Fiscal Policy

Question 36

Multiple Choice

What is the difference between monetary policy and fiscal policy?


A) Fiscal policy deals with taxation and how to spend tax revenue, while monetary policy allows the government to set the price and supply of money.
B) Fiscal policy gives the government the power to create jobs, whereas monetary policy sets the minimum wage for those jobs.
C) Fiscal policy allows the government to set interest rates, while monetary policy allows the government to set tax rates.
D) Fiscal policy is handled by the House of Representatives, whereas monetary policy is handled by the Senate.

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