Economics (AS & A Level) · May / June 2025 · Paper 11 · Question 28
9708Policies to correct imbalances in the current account of the balance of payments
A country has a persistent deficit on the current account of its balance of payments. What is most likely to improve the situation in the long run?
- Aa lowering of the level of import duties
- Ba reduction in the level of income tax
- Cthe introduction of expansionary monetary policy
- Dthe use of grants to encourage new investment by firms
As printed in the paper
Show the answer
Correct answer: D. the use of grants to encourage new investment by firms
Sit this whole paper →More on Policies to correct imbalances in the current account of the balance of payments
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.