Economics 9708 · AS & A Level · Labour market

Labour market — practice question

Which mix of policies would be most effective in cutting a balance of payments current account surplus?

  • Adecrease in tariffs on imports: no; devaluation of exchange rate: yes; expansionary monetary policy: no
  • Bdecrease in tariffs on imports: no; devaluation of exchange rate: no; expansionary monetary policy: yes
  • Cdecrease in tariffs on imports: yes; devaluation of exchange rate: no; expansionary monetary policy: yes
  • Ddecrease in tariffs on imports: yes; devaluation of exchange rate: yes; expansionary monetary policy: no

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