객관식
Which statement best distinguishes fiscal policy from monetary policy in a macroeconomy?
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18. Monetary Policy
Monetary vs Fiscal Policy
객관식
What is the difference between monetary policy and fiscal policy?
A
Monetary policy focuses solely on short‑term inflation control and price stability, whereas fiscal policy focuses solely on long‑term structural growth through public investment and regulation.
B
Monetary policy is implemented by the central bank using interest rates and money‑supply operations to influence inflation and aggregate demand, while fiscal policy is implemented by the government using taxation and public spending to influence aggregate demand and resource allocation.
C
Monetary policy is the government's use of taxation and public spending to stabilize the economy, while fiscal policy is the central bank's use of interest rates and money supply to control inflation.
D
Monetary policy involves direct regulation of specific industries and price controls, while fiscal policy involves managing the national currency and setting interest rates.
검증된 단계별 안내1
Step 1: Understand the definition of monetary policy. Monetary policy is primarily concerned with managing the economy by controlling the money supply and interest rates, typically implemented by the central bank. Its main goals include controlling inflation and influencing aggregate demand.
Step 2: Understand the definition of fiscal policy. Fiscal policy involves government decisions on taxation and public spending to influence the economy. It aims to affect aggregate demand, resource allocation, and can also target long-term economic growth.
Step 3: Identify the key instruments of monetary policy. These include setting interest rates (such as the policy rate) and conducting open market operations to regulate the money supply.
Step 4: Identify the key instruments of fiscal policy. These include government taxation policies and public expenditure programs, which directly affect aggregate demand and economic activity.
Step 5: Compare the roles and authorities responsible for each policy. Monetary policy is typically implemented by the central bank independently of the government, while fiscal policy is determined by the government through its budgetary decisions.
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