CIMA Fundamentals of Business Economics BA1 Question # 112 Topic 12 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 112 Topic 12 Discussion

BA1 Exam Topic 12 Question 112 Discussion:
Question #: 112
Topic #: 12

Which TWO of the following policy actions might be available to a government that wishes to reduce a deficit in the balance of payments?


A.

Devaluate the exchange rate in order to increase exports.


B.

Increase the money supply in order to stimulate domestic consumption.


C.

Appreciate the exchange rate in order to reduce imports.


D.

Reduce the interest rate in order to stimulate investment.


E.

Introduce tariffs on imported goods in order to favour domestic producers.


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