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Economics · Oct / Nov 2025 · Paper 12 · Question 30

2281Current account of the balance of payments

A government wishes to reduce the deficit on the current account of its balance of payments. Which policy should it adopt?

  1. Aincrease subsidies on exports
  2. Bincrease taxes on its exports
  3. Cremove an embargo on imports
  4. Dremove tariffs on its imports

As printed in the paper

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Correct answer: A. increase subsidies on exports

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