A country is presently experiencing deflation, and its national debt is very large and exceeds its annual real income. Which mix of policies is most likely to raise the general price level without increasing the national debt?
- Afiscal policy: decrease the budget deficit; monetary policy: decrease the money supply
- Bfiscal policy: decrease the budget deficit; monetary policy: increase the money supply
- Cfiscal policy: increase the budget deficit; monetary policy: decrease the money supply
- Dfiscal policy: increase the budget deficit; monetary policy: increase the money supply