Which statement is CORRECT? Monetary policy is controlled by the Federal Reserve and works by changing the demand for money and interest rates. Fiscal policy is controlled by the president and congress and works by changing the federal income taxes paid by households and business and the level of government spending. The Federal Reserve's monetary policy decisions are made after consulting the president and congress. To stimulate output and employment using fiscal policy, the president and congress can lower interest rates and increase government spending. To reduce the inflation rate, the Federal Reserve can put controls on the price of essential goods and services