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

Current account of balance of payments — practice question

In 2011, it was reported that the United States (US) needed to reduce its current account deficit. Which policy would assist with this in the short run?

  • Aa protectionist policy
  • Ba strong exchange rate
  • Cincreased private sector spending
  • Dinvestment in the US by multinational firms

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