The government of Lesotho starts a scheme to boost exports and help firms expand by giving subsidies to 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 uncertain; government expenditure rise
- Bincomes rise; balance of payments current account deficit reduce; government expenditure no change
- Cincomes fall; balance of payments current account deficit reduce; government expenditure rise
- Dincomes rise; balance of payments current account deficit uncertain; government expenditure rise