The difference between fiscal and monetary policy is fiscal policy:
A) focuses on government spending and taxing, while monetary policy focuses on saving and borrowing.
B) focuses on saving and borrowing, while monetary policy focuses on government spending and taxing.
C) is used to stimulate an economy, while monetary policy is used to restrain an economy.
D) is used to restrain an economy, while monetary policy is used to stimulate an economy.

Question

Quizplus · Accepted Answer

Fiscal policy involves government decisions on taxation and spending to influence the economy, whereas monetary policy, managed by a country's central bank, involves controlling the money supply and interest rates to achieve economic objectives.

The Difference Between Fiscal and Monetary Policy Is Fiscal Policy