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9. When the government employs a combination of higher spending and lower taxes, this type of policy is called an: a. expansionary exchange rate policy.

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9. When the government employs a combination of higher spending and lower taxes, this type of policy is called an: a. expansionary exchange rate policy. b. expansionary trade policy. c. expansionary monetary policy. d. expansionary fiscal policy. 10. Suppose that a country has a current account deficit and a problem with inflation. A consistent policy mix in this case would be a(n) fiscal policy coupled with a(n) monetary policy. a. expansionary, expansionary b. expansionary, contractionary c. contractionary, constant d. contractionary, contractionary

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