Correct Answer: Option B

Explanation

Methods of correcting adverse balance of payments

Well- known Methods of Correcting in Adverse Balance of Payment

• Trade Policy Measures: Expanding, Exports and Restraining Imports
• Expenditure-Reducing Policies
• Tight Monetary Policy
• Contractionary Fiscal Policy
• Expenditure – Switching Policies: Devaluation
• Devaluation: Marshall Lerner Condition

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