If Restrictive Fiscal Policy Is Combined with Expansionary Monetary Policy

Multiple Choice

If restrictive fiscal policy is combined with expansionary monetary policy to reduce interest rates without changing income, then

A) the income velocity of money should not change
B) the income velocity of money should decrease
C) the demand for money (M1) should not change
D) the demand for money (M1) should decrease
E) both money demand and velocity of M1 should decrease