Quickly lowering a current account deficit often involves:
A) increasing inflation.
B) an appreciation of the currency.
C) lowering GDP.
D) a larger fiscal deficit.
E) none of the above

Question

Quizplus · Accepted Answer

Quickly lowering a current account deficit typically involves measures such as reducing imports through tariffs or quotas, increasing exports, devaluing the currency to make exports cheaper and imports more expensive, or implementing policies to increase savings and reduce consumption. Options A, B, C, and D do not directly contribute to the reduction of a current account deficit in the manner described.

Quickly Lowering a Current Account Deficit Often Involves