Which one of the following is an expenditure-reducing policy that would help to reduce a deficit on the balance of payments on current account?
An increase in:
spending on national infrastructure to boost productivity.
tariffs on imported components to protect domestic industries.
income tax rates to reduce household disposable income.
domestic subsidies to lower the costs of exporting firms.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.