According to the Assignment Rule, Which of the Following Policy

question 17

Multiple Choice

According to the assignment rule, which of the following policy mixes is appropriate for a country with high unemployment, a balance of payments surplus, and fixed exchange rates?

• A)Expansionary fiscal policy and expansionary monetary policy
• B)Expansionary fiscal policy and contractionary monetary policy
• C)Contractionary fiscal policy and expansionary monetary policy
• D)Contractionary fiscal policy and contractionary monetary policy

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