Question on: SS3 Economics - Methods of Correcting Deficit BOP

What is the potential benefit of foreign aid and loans as a method of correcting a deficit balance of payments?

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A

It can support the country's economy and reduce the trade deficit

B

It can reduce the country's foreign debt

 

C

It can increase the country's foreign reserves

D

It can lead to a decrease in domestic production

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Correct Option: A

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