CIMA Fundamentals of Business Economics BA1 Question # 23 Topic 3 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 23 Topic 3 Discussion

BA1 Exam Topic 3 Question 23 Discussion:
Question #: 23
Topic #: 3

A government may try to reduce a balance of payments deficit on current account by using either expenditure-reducing policies or expenditure-switching policies.

Which of the following is an expenditure-reducing policy?


A.

Devaluation of the exchange rate


B.

Imposing tariffs and quotas on imports


C.

Export subsidies


D.

Higher income tax rates


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