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WAEC Economics 2018 Question 43

Question 43

Balance of Payments and Exchange Rates

Which of the following is not a measure for reducing balance of payments deficits?

  1. A.Export drive
  2. B.Reducing tariffs
  3. C.Adding value to export goods
  4. D.Increasing local production
Show the answer and explanation

Answer: B (Reducing tariffs)

Explanation

Lower tariffs make imports cheaper and increase the deficit.