Throughout 2008, inflation and the real interest rate declined togethe

Throughout 2008, inflation and the real interest rate declined together. The cause is a combination of ________.

A) monetary policy easing and declining autonomous spending
B) declining autonomous spending and movement along a fixed MP curve
C) monetary policy tightening and inversion of the MP curve
D) increased government spending and movement along a fixed MP curve
E) none of the above

ANSWER

A