A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2018 · Q291 Mark
China had a US$155 billion current account surplus in 2012. Which combination of policies might the Chinese Government use to reduce the surplus?
Adecrease income tax and raise the value of the Chinese currency, the Yuan
Bincrease income tax and lower the value of the Chinese currency, the Yuan
Cincrease subsidies to Chinese firms and reduce income tax
Dincrease tariffs on imports and increase income tax
✓ Correct answer
A: decrease income tax and raise the value of the Chinese currency, the Yuan
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