Question

What is the difference between monetary

and fiscal policy?
A Monetary policy is controlled by the
federal government while fiscal policy
is controlled by the Federal Reserve.
B Monetary policy is controlled by the
Federal Reserve while fiscal policy is
controlled by Congress and the
President.
C They are effectively the same thing.
D Fiscal policy was invented to combat
inflation. Monetary policy was
invented to improve GDP.

Answer 1

B.

Step-by-step explanation:

Monetary policy is an action taken by the central bank to bring the money supply under control. Under this policy, the central bank also oversees the macroeconomic goals of the nation. The organization that controls the monetary policy is the Federal Reserve of the United States.

Fiscal policy, on the other hand, is a term used to refer to spendings and taxation. Fiscal policy is undertaken by the executive and legislative branches of the government. The executive and legislative branch of the government includes both the President and the Congress.

Therefore, option B is correct.