Economics (AS & A Level) · May / June 2025 · Paper 13 · Question 27
9708Current account of the balance of payments
A country has a deficit on the current account of the balance of payments. What would be expected to increase the deficit?
- Aan appreciation of the exchange rate
- Ban increase in domestic productivity
- Can introduction of import quotas
- Da rise in subsidies to domestic firms
As printed in the paper
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Correct answer: A. an appreciation of the exchange rate
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