According to the Assignment Rule, Which of the Following Policy

question 45

Multiple Choice

According to the assignment rule, which of the following policy mixes is appropriate for a country with high inflation, a balance of payments deficit, 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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Definitions:

Production

The process of creating, manufacturing, or using components to produce a final product or service.

Financial Advantage

A benefit or gain in financial terms, often providing an edge over competitors or a favorable financial position.

Production

The process of creating, manufacturing, or crafting goods and services to be sold or used.

Net Operating Income

Income generated from normal business operations, excluding taxes and interest.