Assuming government wishes to either increase or decrease the level of aggregate demand, which of the following pairs are not consistent policy measures?

A.  A tax increase and an increase in the money supply.
B.  A tax reduction and an increase in the money supply.
C.  A reduction in government expenditures and a decline in the money supply.
D.  A tax increase and an increase in the interest rate.

ANSWER

A.  A tax increase and an increase in the money supply.