Economics 0455 · IGCSE · Current account of balance of payments

Current account of balance of payments — practice question

A government is dealing with an undesirable deficit on the current account of its balance of payments. Which measure would be most likely to cut the deficit?

  • Araising government spending on welfare benefits
  • Breducing income tax
  • Crestricting imports by raising tariffs
  • Drevaluing its currency

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