Bulgaria’s Consumer Price Index recorded an annual change of –2.2% in April 2016. In May, the annual change was –1.4%. Which fiscal policy and monetary policy would be most suitable in the short run to bring back price stability?
- Adecrease government spending; decrease interest rates
- Bdecrease taxes; increase rate of interest
- Cincrease government spending; decrease interest rates
- Dincrease taxes; increase rate of interest