1.

Consider the following actions, which can be taken by the government 1. Devaluation of the domestic currency. 2. Reduction in financial assistance to exports. 3. Implementing suitable policies that bring more FDI into the country and more funds from Flls. Which of the above action/actions can/would be helpful in reducing the current account deficit?

A. 1 and 2
B. 2 and 3
C. only 3
D. 1 and 3
Answer» B. 2 and 3


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