Q. Consider the following actions which the Government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable policies which attract greater FDI and more funds from FIIs. Which of the above action/actions can help in reducing the current account deficit? [CSAT 2011] (Solved)

1. 1 and 2

2. 2 and 3

3. 3 only

4. 1 and 3

  • d. 1 and 3
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