Post Utme Ui 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Ui Economics examination.

Post Utme Ui 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_UI • 2020 • ECONOMICS • objective

A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, if the country experiences a trade deficit, it must either reduce its imports or increase its exports to achieve equilibrium. Which of the following policies would be most effective in reducing the trade deficit?

Answer Options

A. Reducing government sp\ending
B. Increa\sing taxes on imports
Correct Answer C. Implementing a currency devaluation
D. Increa\sing government subsidies for exports
Correct Answer
C
Correct Option:
Implementing a currency devaluation

About This Question

This is Post Utme Ui 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Ui Economics examination.

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