Which of the following is not a measure for reducing bala...
Which of the following is not a measure for reducing balance of payments deficits?
Export drive
Reducing tariffs
Adding to export goods
Increasing local production
Correct answer is B
Tariffs are duties (taxes) imposed on imports. When tariffs are imposed, the prices of imports would increase to the extent of tariff. The increased prices will reduced the demand for imported goods and at the same time induce domestic producers to produce more of import substitutes. Non-essential imports can be drastically reduced by imposing a very high rate of tariff. Therefor, reducing tariffs will further increase balance of payment deficits.
Abstention from consumption which enables capital to be produced is called ...
The use of interest rates to control the money supply is a ...
An increase in the circulation of money without a corresponding increase in output will lead to ...
A change in supply implies a ...
Two basic features common to an industry are ...
Which of the following is the function of a central bank? ...
Which of the following is a factor affecting the size of national income? ...
Deflation can be controlled by increase in ...
An example of government's recurrent expenditure is ...
A movement along a given demand curve for a good is caused by a change in ...