________ policy involves the collection and spending of government revenues, while ________ policy focuses on controlling the size of the nation's money supply.
A) Productivity; inflation
B) Taxation; monetary
C) Monetary; fiscal
D) Fiscal; monetary
E) National debt; annual deficit

Question

Quizplus · Accepted Answer

Fiscal policy involves the collection and spending of government revenues, while monetary policy focuses on controlling the size of the nation's money supply. Option A is incorrect because productivity is the measure of the efficiency of production, while inflation is the rate at which prices are increasing. Option B is incorrect because while taxation plays a role in fiscal policy, it does not encompass the entire policy. Option C is incorrect because it switches the terms for each policy. Option E is incorrect because while the national debt and annual deficit are related to fiscal policy, they are not the actual policy itself.

________ Policy Involves the Collection and Spending of Government Revenues