The country of Genovia is currently experiencing an annual deflation rate of 4 percent, which is expected to continue for some time. The central bank of Genovia has the following policy reaction function: r = 2 + 0.5 17 What are the most expansionary combinations for the real and nominal policy rates that it is possible for the central bank of Genovia to set? Select one: O a. real = 4%, nominal = 0% O b. real = -4%, nominal = 0% O c. real = 4%, nominal = 8% O d. real = 4%, nominal = 4% e. real = 0%, nominal = -4%