In a closed economy, which combination of policies is most likely to work effectively in the short run to cut inflation?
- Afiscal policy: decreasing the budget surplus; monetary policy: increasing the interest rate
- Bfiscal policy: decreasing the budget surplus; monetary policy: increasing the money supply
- Cfiscal policy: increasing the budget surplus; monetary policy: increasing the interest rate
- Dfiscal policy: increasing the budget surplus; monetary policy: increasing the money supply