Which of the following actions can countries with a continuous external deficit take?

Stabilization, Adjustment, Reform and Privatization MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Stabilization, Adjustment, Reform and Privatization

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Subject
Stabilization, Adjustment, Reform and Privatizationeconomics-mcqs › stabilization-adjustment-reform-and-privatization
Published
30 May 2019
Last updated
28 May 2026

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Explanation

The possible measures include: I. borrowing from foreign sources, II. implementing trade barriers and controlling currency exchange, III. adopting expansionary fiscal and monetary policies, and IV. applying policies aimed at reducing expenditures. Countries with ongoing external deficits typically use options I, II, and IV to address the issue.

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