Economics (AS & A Level) · May / June 2022 · Paper 13 · Question 28
9708Policies to correct disequilibrium in the balance of payments
Which measure to correct a balance of payments current account deficit would be classified as an expenditure-reducing policy?
- Aa reduction in interest rates
- Ba revaluation of the currency
- Can increase in direct taxes
- Dan introduction of foreign exchange controls
As printed in the paper
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Correct answer: C. an increase in direct taxes
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