Economics 9708 · AS & A Level · 6.5

6.5 — practice question

During 2008, the Chinese government faced pressure from other countries to cut its current account surplus in the balance of payments. Which combination of Chinese measures would be likely 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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