Over a 1-year period, the Consumer Prices Index (CPI) dropped by 3%. Unemployment was judged to be far too high. Which mix of policies would a government be most likely to use in these circumstances?
- 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