Economics 0455 · IGCSE · Current account of balance of payments

Current account of balance of payments — practice question

Which policy measure would be most likely to cut the current account deficit in an economy’s balance of payments?

  • Adecrease the level of subsidies to domestic producers
  • Bincrease infrastructure spending to increase domestic productivity
  • Cincrease interest rates
  • Dremove import tariffs

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