A government wishes to reduce the surplus on the current account of its balance of payments. Which policy is likely to achieve this?
A.
cutting government spending
B.
devaluing its currency
C.
increasing existing import quotas
D.
increasing import duties
Exam No：0455_m25_qp_12 Year：2025 Question No：30
Answer:
C
Knowledge points:
6.4.1 Structure：The components of the current account of the balance of payments
6.4.2 causes of current account deficit and surplus
6.4.3 consequences of current account deficit and surplus：Impact on GDP, employment, inflation and foreign exchange rate.
6.4.4 policies to achieve balance of payments stability：The range of policies available to achieve balance of payments stability and how effective they might be.
Solution:
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