The appropriate expenditure-switching policy to correct a current account surplus is:
A) Currency revaluation
B) Currency devaluation
C) Expansionary monetary policy
D) Contractionary fiscal policy

Question

Quizplus · Accepted Answer

Currency revaluation makes a country's exports more expensive and imports cheaper, which can help reduce a current account surplus by decreasing export demand and increasing import demand.

The Appropriate Expenditure-Switching Policy to Correct a Current Account Surplus