If a country is grappling with a major balance-of-payment difficulty,it may not be able to expand imports from the outside world.Instead,the country may be tempted to
A)impose measures to restrict imports.
B)impose measures to discourage capital outflows.
C)impose measures to restrict imports and discourage capital outflows.
D)none of the options

Question

Quizplus · Accepted Answer

When a country faces a major balance-of-payment difficulty, it means it is having trouble financing its international transactions, including imports. To address this, a country might impose measures to restrict imports, reducing the outflow of domestic currency to foreign markets. Additionally, it might take steps to discourage capital outflows to preserve its foreign exchange reserves and improve its balance of payments. Therefore, both restricting imports and discouraging capital outflows are viable strategies.

If a Country Is Grappling with a Major Balance-Of-Payment Difficulty,it