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According to the Assignment Rule, Which of the Following Policy

Question 17

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 surplus, 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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