Economics (AS & A Level) · Oct / Nov 2025 · Paper 34 · Question 29

A country with fixed exchange rates faces a surplus on its current account. Which policy is most desirable to maintain the fixed exchange rate?

1. Aan increase in subsidies given to exporters
2. Bthe imposition of trade barriers on the import of non-essential goods
3. Cthe sale of foreign currencies in the foreign exchange market
4. Dthe use of expansionary monetary policy

As printed in the paper