What is the difference between fiscal policy and monetary policy?

A. Fiscal policy mainly deals with changes to interest rates, while monetary policy influences the supply of money within an economy.
B. Fiscal policy only deals with taxation, while monetary policy only deals with changes to interest rates.
C. Fiscal policy mainly deals with taxation and government spending, while monetary policy influences the supply of money within an economy as well as interest rates.
D. Fiscal policy mainly influences the supply of money within an economy as well as interest rates, while monetary policy deals with taxation and government spending.

1 answer

C. Fiscal policy mainly deals with taxation and government spending, while monetary policy influences the supply of money within an economy as well as interest rates.
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