The major difference between monetary and fiscal policy is that:
A) monetary policy influences only the level of GDP, while fiscal policy can only influence government spending and taxation.
B) monetary policy influences government spending, while fiscal policy influences taxation.
C) monetary policy influences only the money supply while fiscal policy influences government spending.
D) monetary policy influences government spending, while fiscal policy influences government spending and taxation.

Question

Quizplus · Accepted Answer

Monetary policy primarily involves managing the money supply and interest rates, while fiscal policy involves government spending and taxation decisions.

The Major Difference Between Monetary and Fiscal Policy Is That