A nation is experiencing a persistent deficit on the current account of its balance of payments.
All other things being equal, which one of the following is most likely to reduce this deficit? An increase in
domestic consumer expenditure
the exchange rate of the national currency
labor productivity in key export industries
the rate of domestic inflation
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.