Acountry implements policies that are expected to increase taxes by €100 million, increase government spending by €50 million, and reduce investments and private sector savings by €25 million each.
as a result, the country's current account balance will most likely:

a. increase by €50 million.
b. decrease by €50 million.
c. increase by €100 million.

A) Increase by 50 million

Explanation:

A is correct.

Below is the current account balance calculation

CA = Sp -I + (T-G- R)

CA stands for Current account balance

Sp stands for Private sector savings

I is Investments, T = Taxes

G represents government spending's, whereas R = Transfers

CA = -25-(-25) + ( 100-50-0 ) = 50, increase by 50 million euro

B. shortage of consumer goods

C. waste and inefficiency

Explanation: