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2.6 The international economy (A-level only)

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Question 59

A country is experiencing a persistent current account deficit on its balance of payments. Ceteris paribus, which of the following is most likely to reduce this deficit?

A

A sustained rise in the domestic rate of inflation relative to its main trading partners

B

An increase in total national savings relative to domestic investment

C

An appreciation of the domestic currency on foreign exchange markets

D

A rise in the marginal propensity to import among domestic households

Markscheme

2.6 The international economy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.6 The international economy (A-level only)

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.

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