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.

Answer: (B)