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Economics (AS & A Level) · Oct / Nov 2024 · Paper 13 · Question 27

9708Current account of the balance of payments

What is most likely to cause a current account deficit?

  1. Aa recession in the domestic economy
  2. Ba relatively high rate of inflation
  3. Can undervalued exchange rate
  4. Dhigh labour productivity

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Correct answer: B. a relatively high rate of inflation

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