Economics (AS & A Level) · Oct / Nov 2024 · Paper 11 · Question 24
9708Current account of the balance of payments
The table shows the trade in goods and services for an economy between 2019 and 2021. | year | trade in goods and services ($ millions) | |---|---| | 2019 | –1000 | | 2020 | –3000 | | 2021 | –4000 | What would have most likely caused the change from 2019 to 2021?
- Aincreasing domestic unemployment
- Bincreasing domestic rate of income tax
- Cincreasing domestic inflation
- Dincreasing import tariffs
As printed in the paper
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Correct answer: C. increasing domestic inflation
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