What strategy should a country adopt to lower its current account deficit?

Choose the correct answer

Explanation

To reduce a current account deficit, a country needs to lower its domestic consumption, which often leads to fewer imports. Increasing government spending or cutting taxes may increase consumption, while boosting private investment does not directly reduce the deficit. Therefore, decreasing domestic consumption is the most effective approach.

What strategy should a country adopt to lower its cu… — The Balance of Payments | PakQuizHub