The combination of quantitative easing (expansionary monetary policy) and expansionary fiscal policy is designed to stimulate economic recovery during or after a recession. These policies work in tandem to:

• Increase liquidity and demand: QE injects money into the financial system by purchasing assets, lowering interest rates, and encouraging borrowing and spending.
• Boost aggregate demand: Expansionary fiscal policy increases government spending or reduces taxes, directly stimulating consumption and investment.

Together, these measures aim to promote economic recovery, reduce unemployment, and encourage growth by addressing both supply-side and demand-side issues.

A is incorrect: The policies are aligned in their stimulative effect. Moving outside the "region of stability" would be more likely with conflicting or excessively aggressive policies. B is incorrect: Expansionary policies are generally associated with inflationary, not deflationary, pressures. C is incorrect: While QE and fiscal expansion can influence exchange rates, their primary goal and effect are to stimulate domestic economic activity, not to manage currency value.