All other things being equal, which of the following macroeconomic changes is most likely to lead to an improvement in an economy's current account balance on the balance of payments?
An appreciation of the real exchange rate of the domestic currency
A sustained increase in the domestic household savings ratio
An expansionary monetary policy that increases credit-funded consumption
An increase in the growth rate of domestic unit labour costs relative to international competitors
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.