Discuss the options for financing a balance of payments deficit

A vertical aggregate supply curve favors which of the following policies?

A. Discretionary policy B. Fiscal policy C. The Fed's eclecticism D. Fixed rules

If there's demand-pull inflation in the economy, then government policy should

a. increase taxes and cut spending, which would shift AD to the left b. increase taxes and spending, which would shift AD to the left c. decrease taxes and spending, which would shift AD to the left d. decrease taxes and increase spending, which would shift AD to the right e. increase taxes and cut its spending, which would shift AS to the left