Which action can a government take to address a deficit in the current account?

Choose the correct answer

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.

Which action can a government take to address a defi… — Basic of Economics | PakQuizHub