Multiple Choice
Which of the following policy measures CANNOT be used to reduce a current account deficit?
A) a tariff on imported goods
B) a devaluation of the currency
C) restrictive monetary policy
D) expansionary fiscal policy
E) a combination of A) and C)
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q29: A country's trade imbalance can improve if
Q30: If exchange rates are flexible and capital
Q31: If a central bank conducts open market
Q32: Suppose the domestic interest rate is 10%,
Q33: Under a fixed exchange rate system, the
Q35: Assume that domestic nominal interest rates decrease
Q36: Under a system of flexible exchange rates,
Q37: A currency depreciation usually leads to a
Q38: Under a crawling peg exchange rate policy,
Q39: Which of the following countries experienced the