Reversing balance of payments disequilibria may came at the expense of
A) Economic relations with our trading partners
B) Domestic recession
C) Price inflation
D) All of the above

Question

Quizplus · Accepted Answer

Reversing balance of payments disequilibria may require a combination of measures such as reducing imports, increasing exports, and lowering domestic consumption. These measures may negatively affect economic relations with trading partners, as they may perceive it as protectionism. Domestic recession may also result from reduced imports and lower consumption. Additionally, reducing imports and increasing exports may lead to price inflation as domestic supply struggles to meet demand. Therefore, all of the above are potential consequences of reversing balance of payments disequilibria.

Reversing Balance of Payments Disequilibria May Came at the Expense