Economics 2281 · O Level · Current account of balance of payments

Current account of balance of payments — practice question

Brazil recorded a balance of payments current account deficit of $\text{US}\$23.5$ billion. Which policy is most likely to cut the current account deficit in Brazil?

  • Adepreciate Brazil’s currency
  • Breduce rates of income tax in Brazil
  • Creduce subsidies to Brazil’s exporting firms
  • Dreduce tariffs on Brazil’s imports

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