Fiscal policy and monetary policy

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Which of the following pairs of actions suggest that fiscal policy and monetary policy are working in the same direction?

A. Government spending and taxes increase by the same amount and the required reserve ratio is increased.

B. Government spending increases and the Fed sells bonds on the open market.

C. Taxes are lowered, and the discount rate is raised.

D. Government spending and taxes decrease by the same amount and the Fed sells bonds on the open market.

E. Taxes are increased, and the Fed buys bonds on the open market.

Reference no: EM13996883

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