Which of the following measure can be adopted to stabiliz...
Which of the following measure can be adopted to stabilize the external value of the local currency?
Reduce the volume of export
Increase the demand for imports
Increase domestic money supply
Reduce the demand for imports
Correct answer is D
A rise in imports has a negative effect on the balance of trade, that is, it will tend to increase the trade deficit or reduce the trade surplus.
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