If expansionary fiscal policy is followed by contractionary monetary policy, nominal interest rate and employment would most likely be affected in which of the following ways in the short-run?

To answer this question, we first need to understand what expansionary fiscal policy and contractionary monetary policy mean.

1. Expansionary Fiscal Policy: This is a form of fiscal policy that involves reducing taxes and/or increasing government spending in order to stimulate economic growth. This can lead to an increase in employment as businesses have more money to invest and hire more workers.

2. Contractionary Monetary Policy: This is a type of monetary policy that involves increasing interest rates and/or reducing the supply of money in the economy. It is used to slow down the economy and prevent inflation. This can lead to a decrease in employment as businesses have less money to invest and may need to lay off workers.

Now, let's look at how these two policies would affect nominal interest rates and employment in the short run:

1. Nominal Interest Rates: Expansionary fiscal policy would typically lead to lower interest rates as the government is pumping more money into the economy. However, contractionary monetary policy would typically lead to higher interest rates as the central bank is trying to slow down the economy. Therefore, the net effect on nominal interest rates would depend on the relative strength of these two policies. If the contractionary monetary policy is stronger, we would expect to see an increase in nominal interest rates.

2. Employment: Expansionary fiscal policy would typically lead to higher employment as businesses have more money to invest and hire more workers. However, contractionary monetary policy would typically lead to lower employment as businesses have less money to invest and may need to lay off workers. Therefore, the net effect on employment would also depend on the relative strength of these two policies. If the expansionary fiscal policy is stronger, we would expect to see an increase in employment.

In conclusion, the effect of expansionary fiscal policy followed by contractionary monetary policy on nominal interest rates and employment in the short run would depend on the relative strength of these two policies.