Suppose there is a simultaneous fiscal expansion and monetary contraction.We know with certainty that

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A simultaneous fiscal expansion (increasing government spending or decreasing taxes) tends to increase aggregate demand, which would normally increase output and interest rates. However, a monetary contraction (reducing the money supply) typically increases interest rates and decreases aggregate demand, potentially lowering output. The certain effect of these combined policies is an increase in interest rates, as both policies contribute to higher interest rates, though they have opposing effects on output.

Suppose There Is a Simultaneous Fiscal Expansion and Monetary Contraction