What is the best combination of fiscal policies and monetary policies for a country like Japan whose price levels are increasing while unemployment is being controlled? a. None of the choices is correct b. Decrease taxes, decrease government spending and decrease money supply c. Decrease taxes, increase government spending and increase money supply d. Increase taxes, decrease government spending and decrease money supply

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy
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What is the best combination of fiscal policies and monetary policies for a country like Japan whose price levels are increasing while unemployment is being controlled?

a.
None of the choices is correct

b.
Decrease taxes, decrease government spending and decrease money supply

c.
Decrease taxes, increase government spending and increase money supply

d.
Increase taxes, decrease government spending and decrease money supply

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