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The Distinction Between Fiscal Policy and Monetary Policy Is That

Question 46

Multiple Choice

The distinction between fiscal policy and monetary policy is that


A) fiscal policy involves either bond-financed changes or open market operations in government finance while monetary policy involves only open market operations.
B) fiscal policy involves only government spending and tax policies. Deficits are handled by the Treasury, and monetary policy requires congressional approval.
C) fiscal policy can be conducted without the Fed's approval but monetary policy requires congressional approval.
D) fiscal policy involves only bond-financed changes in government finance while monetary policy involves some form of open market operations.
E) none of the above descriptions is accurate.

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