Multiple Choice
A contractionary monetary policy combined with an expansionary fiscal policy will lead to
A) an increase in output and an ambiguous effect on the interest rate.
B) an increase in output and an increase in the interest rate.
C) an ambiguous effect on output and an increase in the interest rate.
D) an ambiguous effect on output and an ambiguous effect on the interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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