Which of the following is not used to correct adverse balance of payment?
-
A.
Increasing imports -
B.
Increasing exports -
C.
Decreasing import -
D.
Devaluation
Correct Answer: Option A
Explanation
Exports should be encouraged by granting various bounties to manufacturers and exporters. At the same time, imports should be discouraged by undertaking import substitution and imposing reasonable tariffs.