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- Subject
- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
Which action can a government take to address a deficit in the current account?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
The current account deficit primarily reflects a trade imbalance. By reducing the trade deficit, the government can improve the current account. Decreasing loan repayments or altering the capital account surplus does not directly fix the current account deficit. Similarly, reducing exports would likely worsen the deficit.
More Basic of Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes deflation?
- 2.Under what condition can two nations benefit from engaging in international trade?
- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?