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2.3 Economic performance

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Question 127

A country experiences both a high rate of inflation and a persistent deficit in the balance of payments on current account.

Which one of the following is most likely both to reduce inflation and to reduce the balance of payments deficit?

A

A reduction in interest rates

B

An increase in personal income taxes

C

An increase in the government's budget deficit

D

A depreciation of the exchange rate

Markscheme

2.3 Economic performance Questions

  1. A Level
  2. /Economics
  3. /2.3 Economic performance

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.

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