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Economics · May / June 2024 · Paper 11 · Question 30

2281Current account of the balance of payments

Brazil had a balance of payments current account deficit of US$23.5 billion. Which policy is most likely to reduce the current account deficit in Brazil?

  1. Adepreciate Brazil's currency
  2. Breduce rates of income tax in Brazil
  3. Creduce subsidies to Brazil's exporting firms
  4. Dreduce tariffs on Brazil's imports

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Correct answer: A. depreciate Brazil's currency

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