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Economics (AS & A Level) · Oct / Nov 2024 · Paper 11 · Question 17

9708Introduction to the circular flow of income

What is most likely to increase a country's circular flow of income?

  1. AIts budget deficit increases.
  2. BIts imports increase.
  3. CIts interest rates increase.
  4. DIts exchange rate increases.

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Correct answer: A. Its budget deficit increases.

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