13. Evaluate the effectiveness of the policies to correct a persistent current account deficit.
{"Image DocumentName": "13. Evaluate the effectiveness of the policies to correct a persistent current account deficit.", "Image ImageDescription": "Evaluation of Expenditure reducing policies: The main criticism of deflationary policy is that, as spending-power must fall, personal incomes and standards of living will also fall, and this can trigger demand deficient unemployment. However, different deflationary policies may result in different effects. For example, raising interest rates may work more quickly than raising tax rates. For the above reasons, deflation is a politically unpopular policy option. Voters are much more likely to be concerned with recession and unemployment than with a balance of payments deficit, hence politicians are unlikely to priorities the reduction of a deficit. It is also difficult to predict the precise effect of a fall in spending on imports, which requires an accurate calculation of the marginal propensity to import.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}