contestada

In order to increase the budget surplus while avoiding a possible recession, policy makers can implement the following policy mix:
A. a contractionary monetary policy and expansionary fiscal policy.
B. an expansionary fiscal policy and expansionary monetary policy.
C. an open market purchase of bonds from the public together with a decrease in lump sum taxes.
D. an increase in government spending coupled with an increase in the repo rate.
E. an increase in lump sum taxes and a decrease in the required reserve ratio.