If an economy is currently operating in phase 2 of the business cycle, which monetary and fiscal policy would be most appropriate?
Monetary Policy - Buy Government Bonds / Fiscal Policy - Decrease Taxes
Monetary Policy - Sell Government Bonds / Fiscal Policy - Increase Government Spending
Monetary Policy - Buy Government Bonds / Fiscal Policy - Increase Taxes
Monetary Policy - Sell Government Bonds/Fiscal Policy - Decrease Government Spending