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Economics · May / June 2023 · Paper 11 · Question 30

2281Current account of the balance of payments

Which policy measure is most likely to reduce the current account deficit of the balance of payments of an economy?

  1. Adecrease the level of subsidies to domestic producers
  2. Bincrease infrastructure spending to increase domestic productivity
  3. Cincrease interest rates
  4. Dremove import tariffs

As printed in the paper

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Correct answer: B. increase infrastructure spending to increase domestic productivity

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