Economics · May / June 2021 · Paper 12 · Question 30
2281Current account of the balance of payments
A country has a deficit on its current account of its balance of payments. What could increase the size of its deficit?
- Aincreased exports of its services
- Bincreased international competitiveness of its goods
- Cincreased numbers of visitors from abroad
- Dincreased spending on its military bases abroad
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Correct answer: D. increased spending on its military bases abroad
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