Which of the following is a short-term policy measure taken to improve the BoP situation in an economy?
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: Stabilisation measures
Stabilisation measures are short term measures, intended to correct some of the weaknesses that have developed in the balance of payments and to bring inflation under control.
Structural reform policies are long-term measures, aimed at improving the efficiency of the economy and increasing its international competitiveness.