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

question 29

Multiple Choice

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

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

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Definitions:

Positively Correlated

A relationship between two variables where if one variable increases, the other variable also increases.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Stock Market

A marketplace where stocks (shares of ownership in businesses) are bought and sold, often indicating the general health of an economy.

Stocks

Shares of ownership in companies, traded on stock markets, that represent a claim on the company's assets and earnings.