A useful way to think about this: fiscal policy changes who receives income; monetary policy changes the price of time and leverage. Three quick checks before you act: 1. Name the mechanism in plain English: Both influence demand, but they work through different channels and at different speeds. 2. Say why it matters for behavior or portfolio decisions: That distinction matters when investors try to guess which policy tool can actually stabilize the next problem. 3. Set the review question: Before reacting, ask what mechanism would still matter here if the headline disappeared tomorrow. In practice: Rate cuts can ease financing stress without directly repairing the spending profile of households that never had balance-sheet capacity to begin with. Watch for: The mistake is talking about "stimulus" as though every policy lever works the same way. That is usually where the edge is: not in the vocabulary, but in the structure underneath it.