Economics (AS & A Level) · May / June 2026 · Paper 14 · Question 27
9708Policies to correct imbalances in the current account of the balance of payments
Which policy is not likely to help reduce a current account deficit on the balance of payments?
- Aan increase in expenditure promoting locally produced goods
- Ban increase in the quota on cheap imports
- Can increase in the restrictions on foreign exchange
- Dan increase in the subsidies to exporting industries
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Correct answer: B. an increase in the quota on cheap imports
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