Economics 9708 · AS & A Level · 6.5

6.5 — practice question

A country is running a persistent deficit on the current account of its balance of payments. What is most likely to improve this situation over the long term?

  • Aa lowering of the level of import duties
  • Ba reduction in the level of income tax
  • Cthe introduction of expansionary monetary policy
  • Dthe use of grants to encourage new investment by firms

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