Economics 9708 · AS & A Level · 6.5

6.5 — practice question

In 2008 the Chinese government was facing pressure from other countries to cut its current account surplus on its balance of payments. Which combination of Chinese measures would help to reduce China’s current account surplus?

  • AChinese rate of tariffs: decrease; Chinese subsidies to the country’s exporters: decrease
  • BChinese rate of tariffs: decrease; Chinese subsidies to the country’s exporters: increase
  • CChinese rate of tariffs: increase; Chinese subsidies to the country’s exporters: decrease
  • DChinese rate of tariffs: increase; Chinese subsidies to the country’s exporters: increase

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