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

Question

Quizplus · Accepted Answer

A contractionary fiscal policy can be implemented by the government to decrease the level of its country's current account deficit. This policy involves reducing government spending and increasing taxes, which can reduce imports and increase exports. Wage and price controls, a reduction of public saving, more stringent anti-trust policies, and better fiscal stabilization policies may not necessarily have a direct impact on the current account deficit.

Which of the Following Policies Could Be Implemented by the Government