Match the following possible combinations of internal and external imbalance to achieve internal balance in each case and their effect on external balance and choose the correct answer from the options given below 

List – 1 

List – 2

Case 

Policy for Internal Balance 

Effect on External Balance

i.

Unemployment with deficit

1.

Expansionary

Worsens

ii.

Unemployment with surplus

2.

Expansionary

Improves

iii.

Inflation with  surplus

3.

Restrictive

Worsens

iv.

Inflation with deficit

4.

Restrictive

Improves

1
i – 4; ii – 3; iii – 2; iv – 1
2
i – 3; ii – 4; iii – 1; iv – 2
3
i – 2; ii – 1; iii – 4; iv – 3
4
i – 1; ii – 2; iii – 3; iv – 4

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