Sometimes, the government and the federal reserve pursue conflicting goals. for example, the government may choose to carry out to encourage economic growth. but the federal reserve may carry out to reduce inflation.
1. expansionary monetary policy, contractionary fiscal policy
2. expansionary fiscal policy, contractionary monetary policy
3. contractionary fiscal policy, expansionary fiscal policy

correct answer choice is :

1) expansionary monetary policy, contractionary fiscal policy

explanation:

monetary policy in the united states includes the federal reserve's activities and discussions to encourage the highest employment, stable prices, and average long-term investment rates, the three financial goals the congress has directed the federal reserve to pursue. as the money flows into the banks, more money is ready to allow because there is more money available, interest rates will go down and taking an interest should rise to spur the economy. if the fed needs to slow the economy down it will sell us government protection.

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