Which of these macroeconomic “policy-mixes” would expand equilibrium income without changing equilibrium interest rates in the...

Which of these macroeconomic “policy-mixes” would expand equilibrium income without changing equilibrium interest rates in the short-run macroeconomy?

A. Restrictive fiscal policy mixed with restrictive monetary policy

B. Expansionary fiscal policy mixed with restrictive monetary policy

C. none of these

D. Expansionary fiscal policy mixed with expansionary monetary policy

Expert Solution

Rahul Sunny answered 5 months ago

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