How Do Contractionary Policies Help Correct a Balance of Payments

question 41

Multiple Choice

How do contractionary policies help correct a balance of payments deficit?  

• A) by lowering domestic incomes but raising demand for imports 
• B) by raising domestic incomes but lowering demand for imports 
• C) by raising domestic incomes and raising demand for imports 
• D) by lowering domestic incomes and lowering demand for imports

---

Definitions:

Organization's Progress

The advancement or growth of a company or institution towards achieving its goals and improving its operations.

GMAT Exams

A standardized test used for admissions to graduate business programs globally, assessing analytical, writing, quantitative, verbal, and reading skills.

Self-Efficacy

Refers to an individual's belief in their own ability to achieve tasks and goals.

Self-Esteem

The subjective evaluation of one's worth or value as a person.