A country has been experiencing a persistent deficit in its current account balance due to high levels of imports compared to exports, along with significant outflows of income payments and transfers. To address this issue, the government is considering implementing a range of policies, including devaluation of the currency, imposition of tariffs, and promotion of export industries. The goal is to correct the balance of payments imbalance and improve the country's international financial position. The question is: In this scenario, the primary objective of the government's policies is to: A) Increase the country's reliance on imports B) Decrease foreign investment in the country C) Correct the balance of payments deficit D) Eliminate all forms of international trade

A country has been experiencing a persistent deficit in its current account balance due to high levels of imports compared to exports, along with significant outflows of income payments and transfers. To address this issue, the government is considering implementing a range of policies, including devaluation of the currency, imposition of tariffs, and promotion of export industries. The goal is to correct the balance of payments imbalance and improve the country's international financial position. The question is: In this scenario, the primary objective of the government's policies is to: A) Increase the country's reliance on imports B) Decrease foreign investment in the country C) Correct the balance of payments deficit D) Eliminate all forms of international trade

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A country has been experiencing a persistent deficit in
its current account balance due to high levels of
imports compared to exports, along with significant
outflows of income payments and transfers. To address
this issue, the government is considering implementing
a range of policies, including devaluation of the
currency, imposition of tariffs, and promotion of export
industries. The goal is to correct the balance of
payments imbalance and improve the country's
international financial position.
The question is: In this scenario, the primary objective
of the government's policies is to:
A) Increase the country's reliance on imports
B) Decrease foreign investment in the country
C) Correct the balance of payments deficit
D) Eliminate all forms of international trade

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