Which TWO of the following policy actions might be available to a government that wishes to reduce a deficit in the balance of payments?
A . Devaluate the exchange rate in order to increase exports.
B . Increase the money supply in order to stimulate domestic consumption.
C . Appreciate the exchange rate in order to reduce imports.
D . Reduce the interest rate in order to stimulate investment.
E . Introduce tariffs on imported goods in order to favour domestic producers.
Answer: A,D