Economics (AS & A Level) · Oct / Nov 2022 · Paper 12 · Question 28
9708Policies to correct disequilibrium in the balance of payments
Which government policy is most likely to cause expenditure switching that will benefit a country's current account?
- Aincreasing import quotas
- Bincreasing income tax allowances
- Cincreasing spending on unemployment benefits
- Dincreasing subsidies to domestic firms
As printed in the paper
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Correct answer: D. increasing subsidies to domestic firms
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