Last Minute

Question 1

What are the expenditure reducing policies to rectify a CA deficit

Answer 1

-increase income tax
-increase corporation tax
-cut in Gov spending
-increase interest rates
-decrease money supply

Question 2

What are the expenditure switching policies to rectify a CA deficit

Answer 2

Protectionism
Weakening of exchange rate

Question 3

What are the supply side policies to rectify a CA deficit

Answer 3

-Gov spending on education and training
-Gov spending on infrastructure
-Reducing corporation tax
-deregulation

Question 4

What are the market based policies to promote development

Answer 4

-Trade liberalisation
-FDI promoting
-Floating exchange rate
-Privatisation
-Deregulation

Question 5

What are the interventionist development policies

Answer 5

-Protectionism
-Managed exchange rate
-Aid
-Gov spending
-Regulation
-Nationalisation
-Price controls