What Actions Should Be Taken Under the Internal-External Imbalance of Inflation

question 54

Multiple Choice

What actions should be taken under the internal-external imbalance of inflation and surplus?

• A)Expansionary fiscal policy to correct for excess surplus,and expansionary monetary policy to correct for inflation
• B)Expansionary fiscal policy to correct for inflation,and contractionary monetary policy to correct for surplus
• C)Contractionary fiscal policy to correct for inflation,and expansionary monetary policy to correct for surplus
• D)Contractionary fiscal policy to correct for excess surplus,and contractionary monetary policy to correct for inflation

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Definitions:

Pension Expense

The cost recognized by an employer for the estimated liabilities of pension payments to retirees.

Salaries Expense

The cost incurred by a company to pay for employee services performed during a period.

Time Card

A record of the amount of an employee's time spent on different jobs, typically used for payroll purposes.

Internal Control

A system implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.