A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Oct/Nov 2013 · Q301 Mark
An economy has a high level of unemployment and a large balance of payments deficit on the current account. What would be a suitable policy for the government to adopt?
Adecrease government spending
Bdevalue the currency
Cincrease direct taxation
Dincrease interest rates
✓ Correct answer
B: devalue the currency
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