Concept:A country improves its balance of payment by increasing exports or reducing imports.
Policies that raise domestic spending on imports will worsen the balance of payment instead.
Explanation:Anti-dumping policies restrict cheap foreign imports, so they help improve the balance of payment.
Export subsidies make domestic goods cheaper for foreign buyers, which increases export earnings and improves the balance of payment.
Raising import duties makes foreign goods more expensive, discouraging imports and improving the balance of payment.
However, decreasing taxation on personal income leaves consumers with more disposable income.
This extra income increases demand for both local and imported goods, especially imports.
Therefore, it can worsen the trade balance rather than improve the balance of payment.
Answer:C. decreasing taxation on personal income