An economy is experiencing a rate of inflation above its target alongside a persistent current account deficit on its balance of payments. Which policy measure is most likely to reduce both the rate of inflation and the current account deficit?
A depreciation of the currency's exchange rate
An increase in interest rates
A reduction in corporate tax rates
An increase in state pension payments
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.