The economy is presently functioning at a level of national income close to full employment. Which mix of macro-economic policies would be most likely to produce net deflationary effects?
- Aa 10% cut in the standard rate of income tax and a 5% devaluation of the currency
- Ba 10% cut in the standard rate of income tax and a 5% revaluation of the currency
- Ca 10% rise in the standard rate of income tax and a 5% devaluation of the currency
- Da 10% rise in the standard rate of income tax and a 5% revaluation of the currency