Which of the following is NOT a method of eliminating a current account deficit?
A)levying tariffs
B)implementing expenditure-switching policies
C)implementing expenditure-reducing policies
D)subsidizing imports
E)reducing government spending

Question

Quizplus · Accepted Answer

Subsidizing imports actually worsens a current account deficit by increasing imports and decreasing exports. Levying tariffs, implementing expenditure-switching and expenditure-reducing policies, and reducing government spending are all methods that can help eliminate a current account deficit.

Which of the Following Is NOT a Method of Eliminating