Congratulations! You’ve been hired as an economic adviser to the government of a country that has perfectly flexible exchange rates. State what monetary and fiscal policy you might suggest in each of the following situations, and explain why you would suggest those policies.

a. You want to lower the interest rate, decrease inflationary pressures, and lower the trade deficit.

b. You want to lower the interest rate, decrease inflationary pressures, and lower the trade surplus.

c. You want to lower the interest rate, decrease unemployment, and lower the trade deficit.

d. You want to raise the interest rate, decrease unemployment, and lower the trade deficit.