If policy makers wanted to use both monetary and fiscal policy to ...

[Garrulous]

If policy makers wanted to use both monetary and fiscal policy to stimulate demand and reduce a high rate of unemployment, which of the following would be most appropriate?
 a. A larger budget deficit and the purchase of securities in the open market by the Fed
  b. A government surplus and the sale of securities in the open market by the Fed
 c. A larger government deficit and an increase in the discount rate
 d. A larger government surplus and a reduction in the discount rate

Question 2

Suppose workers expect the inflation rate to be 3.6 percent and they receive a nominal wage increase of 7.5 percent. If the actual inflation rate turns out to be 2.8 percent, workers will receive a lower real wage than expected.
 a. True
  b. False
  Indicate whether the statement is true or false

[lorealeza77]

Answer to Question 1

a

Answer to Question 2

False