The Difference Between Fiscal Policy and Monetary Policy Is That

question 141

Multiple Choice

The difference between fiscal policy and monetary policy is that

• 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
• E)fiscal policy involves the promotion of competition and monetary policy involves collecting money to pay for taxes

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Definitions:

Net Operating Income

The total earnings generated from a company's operations, excluding taxes and interest.

Investment Opportunity

A situation or option through which an investor can potentially increase their wealth by allocating resources in a way that generates returns.

Margin

Net operating income divided by sales.

Contribution Margin Ratio

The percentage of each sale that contributes to covering fixed costs, calculated as contribution margin divided by sales revenue.