A country uses a fixed exchange rate system, yet it is now facing high unemployment and a deficit on the current account of its balance of payments. Which pair of policies would be most likely to improve both unemployment and the current account of the balance of payments?
- Aadditional net spending by the government and a devaluation of the currency
- Badditional net spending by the government and revaluation of the currency
- Ca reduction in net spending by the government and a devaluation of the currency
- Da reduction in net spending by the government and a revaluation of the currency