A country’s government wants to redirect demand away from private consumption and towards investment and net exports. Which combination of policy measures would be most likely to enable it to achieve this aim?
- Ainterest rates: decrease; rate of value added tax: decrease
- Binterest rates: decrease; rate of value added tax: increase
- Cinterest rates: increase; rate of value added tax: decrease
- Dinterest rates: increase; rate of value added tax: increase