Which of the following correctly differentiates between monetary and fiscal policy?
1
Monetary policy is managed by the central bank, while fiscal policy is managed by the government.
2
Fiscal policy involves controlling the supply of money, while monetary policy involves managing government spending and taxation.
3
Monetary policy only affects short-term economic conditions, while fiscal policy affects long-term economic growth.
4
Fiscal policy is used to control inflation, while monetary policy targets government debt.