Consider the following actions which the Government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable polic

Question

Consider the following actions which the Government can take:
1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from FIls.
Which of the above action/actions can help in reducing the current account deficit?

Accepted Answer

(D) 1 and 3 only

Answer

(A) 1 and 2 only

Answer

(B) 2 and 3 only

Answer

(C) 3 only