China had US$155 billion current account surplus in 2012.
Which combination of policies might the Chinese Government use to restore equilibrium?
Decrease income tax and raise the value of the Chinese currency, the Yuan.
2 )
Increase income tax and lower the value of the Chinese currency, the Yuan.
3 )
Increase subsidies to Chinese firms and reduce income tax.
4 )
Increase tariffs on imports and increase income tax.
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