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
Correct Answer:
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Q25: The figure below shows an IS-LM-FE model
Q26: According to the assignment rule, which of
Q27: The figure below shows an IS-LM-FE model
Q28: According to the assignment rule, which of
Q29: Under perfect capital mobility and fixed exchange
Q31: International capital-flow shocks to an economy with
Q32: Assume that the FE curve is flatter
Q33: Which of the following statements is accurate?
A)Fiscal
Q34: The J curve shows that:
A)devaluation is more
Q35: If a country with high unemployment, a
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