A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2012 · Q301 Mark
The currency of a country is fixed by the Central Bank at a certain value in terms of US dollars. If currency devaluation is not possible, which policy might be used to reduce a current account deficit on the balance of payments?
Adecrease in interest rates
Bdecrease in tax rates
Cdecrease in tariffs on imports
Ddecrease in public expenditure
✓ Correct answer
D: decrease in public expenditure
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Government macroeconomic intervention and see which topics are most likely to come up next.
Sign up free →