Note AcademyNote Academy
Start

Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 28

9708Policies to correct disequilibrium in the balance of payments

An economy has a balance of payments surplus, which it wishes to eliminate. In order to achieve this objective, which combination of policies would be most appropriate?

  1. Aa depreciation of the currency and an increase in government spending
  2. Ban appreciation of the currency and a cut in interest rates
  3. Can increase in the money supply and a pay freeze
  4. Dincreases in both direct and indirect taxation

As printed in the paper

Show the answer

Correct answer: B. an appreciation of the currency and a cut in interest rates

Sit this whole paper →More on Policies to correct disequilibrium in the balance of payments

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.