Question: Which policy measure would tend to reduce both the rate of inflation and a balance of payments deficit?
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a.an appreciation of the country's currency
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b.an increase in import tariffs
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c.a reduction in government spending
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d.a reduction in the level of interest rates
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e.None of these
Answer: c
 an appreciation of the country's currency b) an increase in import tariffs c) a reduction in government spending d) a reduction in the level of interest rates e) None of these Ans. c) a reduction in government spending
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