WAEC - Economics (2015 - No. 45)
In order to correct adverse balance of payments problem, government should?
reduce tariffs
increase subsidies on exports
increase tax on local industries
reduce personal income tax
Shpjegimi
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