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in Open Economy Macroeconomics by (25.6k points)

Which of the following would be an appropriate policy to reduce a Balance of Payment / Deficit.

(i) An increase in government spending. 

(ii) A cut in the level of indirect taxes 

(iii) An increase in interest rates 

(iv) A decrease in interest rates

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1 Answer

+1 vote
by (27.3k points)

(iii) An increase in interest rates

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