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Economics · May / June 2016 · Paper 12 · Question 27

2281Current account of the balance of payments

What might cause the balance on the current account of Mauritius to improve?

  1. Aincreased purchases of coffee from Kenya
  2. Bincreased transport of Mauritian goods in Greek ships
  3. Cincreased spending by Mauritians on holidays in South Africa
  4. Dincreased spending by tourists in Mauritian hotels

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Correct answer: D. increased spending by tourists in Mauritian hotels

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