Consider the following actions which the Government can take 1 Devaluing the domestic...........

Economic Affairs Balance of Payments

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?

1 and 2

2 and 3

3 only

1 and 3

3rd statement is incorrect i.e. Adopting suitable policies which attract greater FDI and more funds from FIIs.

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