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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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