Question

Distinguish between fiscal and monetary policy?

Answer 1

[AI-generated answer — Bot]

Fiscal policy is the use of government spending and taxation to influence the economy. It is typically implemented by the government to achieve certain economic and social objectives. Examples of fiscal policy include changes in tax rates, government spending, and public borrowing.

Monetary policy is the use of a central bank's tools to influence the availability and cost of money and credit to help promote national economic goals. Examples of monetary policy include setting interest rates, changing the money supply, and influencing the exchange rate.