Q. Which of the following statements are(is) correct? (Solved)
1. Expansionary monetary policy and expansionary fiscal that leads to budget deficits create low interest rates
2. High interest rates in the first half of the 1980s resulted from falls in the budget deficit under the Reagan administration
3. The best monetary-fiscal policy mix to keep interest rates low would be to raise taxes and raise the money supply
4. The answer depends upon the school of thought used to evaluate the effects of deficit policies
- d. The answer depends upon the school of thought used to evaluate the effects of deficit policies