Answer :
the combinations of monetary and fiscal policies that would have the greatest effect o fighting inflation would be : increase the prime lending rate and decrease government spending
By increasing the lending rate, we will decrease the amount of dolalrs that are circulated. When there is less dollar in the market, the value of dollar will be increased. The same principla applied to decreasing government spending
By increasing the lending rate, we will decrease the amount of dolalrs that are circulated. When there is less dollar in the market, the value of dollar will be increased. The same principla applied to decreasing government spending
