An Effective Policy to Reduce a Trade Deficit in a Small

question 57

Multiple Choice

An effective policy to reduce a trade deficit in a small open economy would be to:

• A) increase tariffs on imports.
• B) impose stricter quotas on imported goods.
• C) increase government spending.
• D) increase taxes.

---

Definitions:

Assistance

The act of helping or supporting someone with a task or difficulty.

Learning Vocabulary

The process of acquiring new words and their meanings to enhance language skills and comprehension.

Category

A class or division of people or things regarded as having particular shared characteristics.

Educational Programs

Structured sets of learning activities or curriculum designed to achieve specific educational aims or qualifications.