Economics (AS & A Level) · Oct / Nov 2021 · Paper 32 · Question 30
9708Policies to correct imbalances in the current account of the balance of payments
What is most likely to be an appropriate government action to reduce both a balance of payments current account surplus and the rate of inflation?
- Adecrease the rate of interest
- Bdevalue the currency
- Cincrease direct taxes
- Dremove tariffs on imports
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Correct answer: D. remove tariffs on imports
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