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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?

  1. Aa fall in foreign direct investment into the country
  2. Ba fall in interest earned on overseas investment by the country
  3. Ca fall in the value of imported manufactured goods into the country
  4. 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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