Under a system of fixed exchange rates, a country experiencing unemployment and a balance of payments surplus should employ
A)expansionary monetary policy
B)expansionary fiscal policy
C)an income tax cut combined with a devaluation of the currency
D)open market sales combined with a devaluation of the currency
E)a combination of restrictive fiscal and expansionary monetary policy

Question

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The Answer of Under a system of fixed exchange rates, a country experiencing unemployment and a balance of payments surplus should employ
A)expansionary monetary policy
B)expansionary fiscal policy
C)an income tax cut combined with a devaluation of the currency
D)open market sales combined with a devaluation of the currency
E)a combination of restrictive fiscal and expansionary monetary policy

Under a System of Fixed Exchange Rates, a Country Experiencing