Stagflation poses a dilemma for policymakers because?

A. if a contractionary fiscal policy is used to combat inflation, equilibrium GDP will tend to rise.

B. if an expansionary fiscal policy is used to combat unemployment, the price level will tend to fall.

C. if an expansionary fiscal policy is used to expand the economy, the price level will tend to rise.

TABLE 3 shows a hypothetical bank's balance sheet. The banking system can expand loans by a maximum of