What is the difference between monetary policy and fiscal policy?

What is the difference between monetary policy and fiscal policy?

• A. Monetary policy uses central bank tools to influence money and interest rates; fiscal policy uses government spending and taxes.
• B. Monetary policy relies on fiscal deficits with no central bank involvement.
• C. Monetary policy sets tax policy; fiscal policy sets interest rates.
• D. Monetary policy and fiscal policy are the same.

Answer: (D)