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In response to the COVID crisis, the US Congress passed a $2 trillion stimulus package. Was...

In response to the COVID crisis, the US Congress passed a $2 trillion stimulus package. Was this an example of monetary or fiscal policy?

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The main difference between the fiscal policy and the monetary policy is that, the monetary policy is implemented by the central bank of the of the country and the fiscal policy by the governmnent it self. The tools of the fiscal polciy are taxtaion, spending and public borrowing, the tools of the monetary are openmarrket operations, changes in the discount rates and reserve ratio. The given is an example for the fiscal policy and it is an increase in the government spending.

Ans: Fiscal policy.

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