According to the assignment rule, if a country has excessive inflation and a balance of payments surplus, it should ease monetary policy and tighten fiscal policy.

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According to the assignment rule, if a country has excessive inflation and a balance of payments surplus, it should ease monetary policy and tighten fiscal policy. This is because excessive inflation is typically caused by an expansionary monetary policy, while a balance of payments surplus is typically caused by an expansionary fiscal policy. By easing monetary policy and tightening fiscal policy, the government can help to reduce inflation and improve the balance of payments.

According to the Assignment Rule, If a Country Has Excessive