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Thursday, 30 April 2026
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In order to correct adverse balance of payments problem, government should?

In order to correct adverse balance of payments problem, government should?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Reduce tariffs
  • B Increase subsidies on exports
  • C Increase tax on local industries
  • D Reduce personal income tax
Correct Answer: Option B
Explanation:
Methods of correcting adverse balance of payments
Well- known [b]Methods of Correcting in Adverse Balance of Payment[/b]

Trade Policy Measures: Expanding, Exports and Restraining Imports
Expenditure-Reducing Policies
Tight Monetary Policy
Contractionary Fiscal Policy
Expenditure – Switching Policies: Devaluation
Devaluation: Marshall Lerner Condition

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