Note AcademyNote Academy
Start

Economics (AS & A Level) · May / June 2023 · Paper 11 · Question 29

9708Current account of the balance of payments

A country experiences a fall in the value of exports and an increase in the value of imports of goods and services. What are the effects of these changes?

  1. Aaggregate demand: fall; balance of payments on goods and services: improve
  2. Baggregate demand: fall; balance of payments on goods and services: worsen
  3. Caggregate demand: rise; balance of payments on goods and services: improve
  4. Daggregate demand: rise; balance of payments on goods and services: worsen

As printed in the paper

Show the answer

Correct answer: B. aggregate demand: fall; balance of payments on goods and services: worsen

Sit this whole paper →More on Current account of 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.