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Two routes to a smaller deficit

Two routes to a smaller deficit

An expenditure-switching policy redirects demand from imported goods and services towards domestically produced alternatives. A currency depreciation makes imports relatively more expensive and can make exports more price-competitive. Tariffs make imports more expensive, while import quotas restrict their quantity, but neither directly reduces export prices.

11.1.3 difference between expenditure-switching and expenditure-reducing policies Lesson

  1. Intl A Level
  2. /Economics
  3. /11.1.3 difference between expenditure-switching and expenditure-reducing policies

Step-by-step lessons on CIE Intl A Level Economics 11.1.3 difference between expenditure-switching and expenditure-reducing policies. Each one builds up to exam-style questions.

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