The government of Lesotho launches a programme designed to raise exports and help firms expand by subsidising local entrepreneurs. What effect is this likely to have on incomes, the current account deficit in the balance of payments and government expenditure in Lesotho?
- Aincomes fall; balance of payments current account deficit uncertain; government expenditure rise
- Bincomes rise; balance of payments current account deficit reduce; government expenditure no change
- Cincomes fall; balance of payments current account deficit reduce; government expenditure rise
- Dincomes rise; balance of payments current account deficit uncertain; government expenditure rise