Country X's economy is in an inflationary gap. Which of the following combinations of fiscal and monetary policy actions would restore full employment in the short run?A. A decrease in income taxes and a decrease in the required reserve ratioB. A decrease in income taxes and an increase in the discount rateC. A decrease in government spending and an open-market purchase of government bonds by the country's central bankD. An increase in government spending and targeting a lower interest rate on overnight interbank loansE. An increase in income taxes and an open-market sale of government bonds by the country's central bank
