What is the mixture of monetary and fiscal policies that can cure each of the following imbalances?

a. Rising inflation and overall payments deficit (e.g., point H in Figure 23.12).

b. Rising inflation and overall payments surplus (e.g., point F in Figure 23.12).

c. Insufficient aggregate demand and overall payments surplus (e.g., point C in Figure 23.12).

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FIGURE 23.12 Monetary- Fiscal Recipes for Internal and External Balance State of the Domestic Economy High unemployment Rapid inflation Easier monetary policy, Surplus easier fiscal policy Easier monetary policy, tighter fiscal policy State of the Balance of Payments Deficit Tighter monetary policy, easier fiscal policy Tighter monetary policy, tighter fiscal policy Interest rate = i LM' G FE C. E H B' N Yfull IS' Domestic product = Y