Which of the following measure can be adopted to stabilize the external value of the local currency?

A. reduce the volume of export
B. increase the demand for imports
C. increase domestic money supply
D. reduce the demand for imports

Correct Answer: Option D

D. reduce the demand for imports

Explanation

A rise in imports has a negative effect on the balance of trade, that is, it will tend to increase the trade deficit or reduce the trade surplus.