A government wishes to reduce a persistent current account deficit on its balance of payments by implementing an expenditure-reducing fiscal policy. Which of the following measures is most likely to achieve this objective?
A reduction in the rate of national insurance contributions
A decrease in the level of state pension and welfare transfer payments
A lowering of the central bank's benchmark interest rate
An increase in public sector capital expenditure on transportation networks
68 exam-style questions on OCR A Level Economics Fiscal policy. Each one has a worked solution and a mark scheme showing where the marks go.