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In an economy characterized by high inflation and low unemployment, the central bank decides to implement a contractionary monetary policy. Concurrently, the government introduces significant

In an economy characterized by high inflation and low unemployment, the central bank decides to implement a contractionary monetary policy. Concurrently, the government introduces significant subsidies for key industries to stimulate production. What is the most likely short-term impact of these conflicting economic policies? A) A rapid decrease in inflation and a significant increase in unemployment. B) Stabilization of inflation and a boost in economic production. C) Heightened inflationary pressure and reduced effectiveness of monetary policy. D) A decrease in industrial production due to higher interest rates.Provide valuable answer

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