Economics (AS & A Level) · Feb / March 2021 · Paper 12 · Question 23
9708Policies to correct imbalances in the current account of the balance of payments
A country has a deficit on the current account of its balance of payments. What might help the country to reduce its deficit?
- Aa decrease in its rate of income tax
- Ba decrease in its tariffs
- Can increase in its level of employment
- Dan increase in its subsidies to exporters
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Correct answer: D. an increase in its subsidies to exporters
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