The difference between fiscal policy and monetary policy is that
a. fiscal policy is macroeconomic policy and monetary policy is microeconomic policy
b. monetary policy is macroeconomic policy and fiscal policy is microeconomic policy
c. fiscal policy involves regulation of natural monopolies and monetary policy involves the provision of public goods
d. monetary policy involves regulation of the money supply and fiscal policy involves government spending and taxing
e. fiscal policy involves the promotion of competition and monetary policy involves collecting money to pay for taxes
Question 2
The term fiscal policy refers to
a. the amount of physical output produced by firms
b. the means by which government policy makes firms more productive
c. the avenue by which government influences credit markets
d. spending and taxing by governments
e. a tool of government that works in the opposite direction of monetary policy
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