The government of Lesotho launches a programme designed to increase exports and support firms’ growth by subsidising local entrepreneurs. What impact is this likely to have on incomes, the balance of payments current account deficit and government expenditure in Lesotho?
- Aincomes: fall; balance of payments current account deficit: reduce; government expenditure: rise
- Bincomes: fall; balance of payments current account deficit: uncertain; government expenditure: rise
- Cincomes: rise; balance of payments current account deficit: reduce; government expenditure: no change
- Dincomes: rise; balance of payments current account deficit: uncertain; government expenditure: rise