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What Is the Difference Between Fiscal Policy and Monetary Policy

Question 120

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What is the difference between fiscal policy and monetary policy?  


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.

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