A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2022 · Q281 Mark
'Reducing the exchange rate helps to decrease a country's balance of payments deficit because it makes imports more expensive and exports cheaper.' What does this statement describe?
Adeflationary policy
Bpolicy of direct controls
Can expenditure-reducing policy
Dan expenditure-switching policy
✓ Correct answer
D: an expenditure-switching policy
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