Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 30
9708Policies to correct imbalances in the current account of the balance of payments
A country has a current account deficit on its balance of payments. The government also has a budget deficit. Which measure to reduce the current account deficit will increase the budget deficit?
- Adepreciating the exchange rate
- Bintroducing quotas on imports
- Craising tariffs on imports
- Dsubsidising exports
As printed in the paper
Show the answer
Correct answer: D. subsidising exports
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.