Economics 9708 · AS & A Level · 6.5

6.5 — practice question

Policies that a government could adopt to cut a deficit on the current account include devaluation, cuts in government spending, rises in interest rates and tariffs. Which two of these policies are classed as expenditure-reducing?

  • Adevaluation and government spending cuts
  • Bgovernment spending cuts and interest rate rises
  • Cinterest rate rises and tariffs
  • Dtariffs and devaluation

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