According to the Assignment Rule, Which of the Following Policy

question 27

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 deficit, and fixed exchange rates?

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

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Definitions:

Tax Purposes

For tax purposes refers to the specific calculations, classifications, and filings done in adherence to tax laws and regulations to determine tax liabilities or refunds.

Business Entity Assumption

An accounting principle that treats a company's operations as separate from its owners or other businesses.

Personal Assets

Items of value owned by an individual, including real estate, bank accounts, investments, and personal property.

Objectivity Principle

The objectivity principle in accounting states that financial information presented in the accounts of a business should be based on objective evidence and be verifiable, avoiding personal opinions or biases.