Policies that a government could adopt to cut a deficit on the current account of the balance of payments include devaluation, cuts in government spending, higher interest rates and tariffs on imports. Which two of these policies would be regarded as expenditure-switching?
- Adevaluation and government spending cuts
- Bgovernment spending cuts and interest rate rises
- Cinterest rate rises and tariffs on imports
- Dtariffs on imports and devaluation