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:

Payments

The act of transferring money or other valuable consideration from one party to another as a fulfillment of a legal obligation or for the acquisition of goods or services.

Contract

A legally binding agreement between two or more parties, creating obligations that are enforceable by law.

Infant

A legal term referring to a person who is not yet of the age of majority, typically under 18 years old, and therefore is considered unable to enter into contracts.

Jurisdictions

The official power to make legal decisions and judgments, often restricted to a certain geographical area or type of case.