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Business, 10.12.2019 21:31 rupanti19p4sqpj

If the economy is suffering from stagflation, monetary policy could conflict with fiscal policy because:

a. the government may not want to monetize a deficit.
b. the government may feel that raising taxes is politically unpalatable.
c. monetary policy could be directed at solving inflation by utilizing its tools to implement a contractionary policy, whereas, fiscal policy may be utilizing its tools to solve a stagnating economy that would lead to an expansionary policy.
d. none of the above.

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