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Economics (AS & A Level) · May / June 2024 · Paper 31 · Question 25

9708Policies to correct disequilibrium in the balance of payments

What is not an example of an expenditure-reducing policy?

  1. Aa decrease in government spending
  2. Ba depreciation of the exchange rate
  3. Can increase in direct taxes
  4. Dan increase in interest rates

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Correct answer: B. a depreciation of the exchange rate

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