Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

A country is running a current account deficit in its balance of payments. It also has a government budget deficit. Which measure to reduce the current account deficit will increase the budget deficit?

  • Adepreciating the exchange rate
  • Bintroducing quotas on imports
  • Craising tariffs on imports
  • Dsubsidising exports

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