Answer :

GinnyAnswer

Final answer:

Measures like adjusting exchange rates and implementing fiscal policies can effectively address a persistent balance of payments surplus.


Explanation:

Dealing with a persistent balance of payments surplus can be tackled effectively through several measures such as:

  1. Adjusting exchange rates to a lower value.
  2. Implementing fiscal policies that reduce government spending or increase taxes to reduce domestic demand.
  3. Encouraging imports by lowering trade barriers or tariffs.

By adopting these measures, countries can address the issues caused by persistent balance of payments surpluses.


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