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Which, if any, of the following statements are correct: 1) The combination of an expansionary fiscal and monetary policy aims at decreasing the level of
Which, if any, of the following statements are correct:
1) The combination of an expansionary fiscal and monetary policy aims at decreasing the level of prices.
2) The combination of an expansionary monetary policy and a contractionary fiscal policy leads to an increase in the interest rates and a decrease in investment; however, the effect on AD is undefined.
3) A government may adopt an expansionary monetary policy without changing the nominal interest rates.
4)None of the other possible answers.
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