Disequilibrium in the balance of payments means?

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An increase in exports

A deficit in the current account

A surplus in the current account

A decrease in imports

answer is B.

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Detailed Solution

Disequilibrium in the balance of payments refers to a situation where a country's current account balance is negative or in deficit. This means that the country is importing more goods and services than it is exporting, or it is earning less income from its exports than it is paying out for its imports. A current account deficit can lead to a reduction in a country's foreign exchange reserves, which can weaken its currency and make it more difficult to finance international trade and investment.

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