Answer :
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:
- Adjusting exchange rates to a lower value.
- Implementing fiscal policies that reduce government spending or increase taxes to reduce domestic demand.
- 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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