Contractionary Policies Help Correct a Balance of Payments Deficit by

question 105

Multiple Choice

Contractionary policies help correct a balance of payments deficit by

• A)lowering domestic incomes but raising demand for imports
• B)raising domestic incomes but lowering demand for imports
• C)raising both domestic incomes and demand for imports
• D)lowering both domestic incomes and demand for imports
• E)lowering interest rates and increasing aggregate spending