An economy is experiencing a surplus on the current account of its balance of payments.
Which one of the following sets of circumstances is most likely to cause this surplus to decrease?
A depreciating exchange rate and an increase in domestic savings rates
Expansionary fiscal policy and an appreciating exchange rate
Improved labour productivity and lower inflation relative to trading partners
Contractionary monetary policy and a weaker exchange rate
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.