Contractionary monetary policy-expansionary fiscal policy

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Reference no: EM13800485

If the economy's output is initially above full employment and if prices are rising, which of the following policy combinations could restore full employment and keep the exchange rate at the same level?

a. Contractionary monetary policy and expansionary fiscal policy

b. Contractionary monetary and fiscal policy

c. Expansionary monetary and fiscal policy

d. Contractionary fiscal policy and expansionary monetary policy

Reference no: EM13800485

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