Practise tracing economic growth through household import demand, export capacity, competitiveness and capital flows to judge balance-of-payments effects.
When will government success in achieving economic growth be most likely to conflict with a desire to reduce a surplus in the balance of payments?
when growth depends upon the import of capital equipment
when growth increases foreign investors' confidence in the country
when growth requires a reduction in the level of its tariffs
when growth results from the removal of restrictions on capital outflows
B