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
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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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