may differ in this respect,the choice between alterative methods may depend on the income may lead to some reduction in the domestic price level,and/or a greater eagerness of domestic producers to compete with foreign producers both at home and abroad,expenditure- reducingpolicies mayhave incidental effects Expenditure-switching policies may be divided into two types.according to whether the policy instrument employed is general or selctive:devaluntion (which may be taken the case of a deflation-induced reduction of the domestic price level under fixed exchange rates),and trade controls (including both tariffs and subsidies and quantitative restrictions) contros are usually imposed on imports,and aim at (or have the effect of)switching domestic expenditure away from imports towards home goods,though sometimes they are used to Both types of expenditure-switching policy may have direct impuct-effects on residents expenditure.Devaluation may result in increased expenditurefrom the initial inme level, through thecedf-rade effect"ofvete-rade m ment in reducing real income and therefore the proportion of income saved.Trade controls will tend to have the same effect,via the reduction in real incme freedom of choice. In addition.trade conros must alter the real expenditure corresponding to the initial output level if they take the fomm of import duties or export subsidies uncomp nsated by other fiscal changes this eshould,however,be cse dasa combined policy of expenditure-chang (unfavourable in the case of the export subsidy)and expenditure-switch Whether nature,an expenditure-switching policy seks deficit by switching towards dom tic goods;and it depends for success not only on switching demand in the right direction,but also on the capacity of the make available the additional demand.Such policies therefore pose two problems for economic analysis:the conditions required for expenditure to be switched in the desired direction,and the source of the additional output meet the additional demand. As to the first question,the possibilities of failure for both devaluation and controls have t ith hee polcy ex d to ied Jor a shor wil b ooks th ing the r tive in u n白a to the final sent of the aph.is that if the of the tt) ne is