The Consumer Prices Index (CPI) decreased by 3% over one year. Unemployment was considered unacceptably high. In these circumstances, which combination of policies would a government be most likely to use?
- Aan appreciation of the currency, together with an increase in the rate of interest
- Bincreased government expenditure on education, together with an increase in taxes to pay for it
- Cincreased indirect taxes, together with a depreciation in the exchange rate
- Dreduced income taxes, together with a cut in the rate of interest