Which of the following policies could be implemented by the government in order to decrease its country's current account deficit?

Question

Quizplus · Accepted Answer

A contractionary fiscal policy typically involves reducing government spending and/or increasing taxes in order to decrease aggregate demand and reduce imports. This can help to decrease the country's current account deficit by reducing the excess of imports over exports. The other options are unrelated or unlikely to have a significant impact on the current account deficit.

Which of the Following Policies Could Be Implemented by the Government