Question on: WAEC Economics - 2015

In order to correct adverse balance of payments problem, government should? 

A
reduce tariffs
B
increase subsidies on exports
C
increase tax on local industries
D
reduce personal income tax
Ask EduPadi AI for a detailed answer
Correct Option: B

Methods of correcting adverse balance of payments

Well- known Methods of Correcting in Adverse Balance of Payment

  • Trade Policy Measures: Expanding, Exports and Restraining Imports
  • Expenditure-Reducing Policies
  • Tight Monetary Policy
  • Contractionary Fiscal Policy
  • Expenditure – Switching Policies: Devaluation
  • Devaluation: Marshall Lerner Condition

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