Question 1:

You observe that during the past few years that New Zealand's current account deficit has become smaller. This could be due to

1. the New Zealand government's buy New Zealand campaign which has reduced imports in favor of domestically produced goods.

2. an increase in lamb exports as a result of a shift of resources from beef to lamb production.

3. policies of the New Zealand government that have created uncertainty about the future returns from investing in New Zealand.

4. any or all of the above.

Choose the correct option.