Economics (AS & A Level) · Oct / Nov 2024 · Paper 12 · Question 26
9708Policies to correct imbalances in the current account of the balance of payments
Which policy is most likely to reduce a balance of payments deficit without causing inflation?
- Adecreased import quotas
- Bdepreciation of currency
- Chigher interest rates
- Ddecreased import tariffs
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Correct answer: C. higher interest rates
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