Economics 9708 · AS & A Level · 6.5

6.5 — practice question

In 2012, China recorded a US$155 billion current account surplus. Which combination of policies might the Chinese Government use to bring equilibrium back?

  • ADecrease income tax and raise the value of the Chinese currency, the Yuan.
  • BIncrease income tax and lower the value of the Chinese currency, the Yuan.
  • CIncrease subsidies to Chinese firms and reduce income tax.
  • DIncrease tariffs on imports and increase income tax.

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