All other things being equal, which combination of economic changes is most likely to lead to an improvement in a country's balance of payments on current account?
| Domestic inflation rate relative to trading partners | Exchange rate of the domestic currency | Rate of productivity growth relative to trading partners | |
|---|---|---|---|
| A | Higher | Appreciating | Lower |
| B | Higher | Depreciating | Higher |
| C | Lower | Depreciating | Higher |
| D | Lower | Appreciating | Lower |
Combination A
Combination B
Combination C
Combination D
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.