Fiscal policy changes who receives income; monetary policy changes the price of time and leverage. What is happening: Both influence demand, but they work through different channels and at different speeds. That distinction matters when investors try to guess which policy tool can actually stabilize the next problem. 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. Useful lens: A useful review question is which funding, incentive or cash-flow channel is actually doing the work. A lot of confusion disappears once you separate the headline from the mechanism.