Economics · Oct / Nov 2019 · Paper 12 · Question 29
2281Current account of the balance of payments
What would cause a rise in the deficit on the current account of the balance of payments?
- Aa fall in foreign direct investment into the country
- Ba fall in interest earned on overseas investment by the country
- Ca fall in the value of imported manufactured goods into the country
- Da rise in the revenue earned from tourism in the country
As printed in the paper
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Correct answer: B. a fall in interest earned on overseas investment by the country
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