An economy has a persistent deficit on the current account of its balance of payments. Under which of the following combinations of economic circumstances is the economy most likely to experience a reduction in its current account deficit?
Growth in the world economy: Rising; Domestic inflation: Falling; Domestic productivity: Rising
Growth in the world economy: Falling; Domestic inflation: Rising; Domestic productivity: Falling
Growth in the world economy: Rising; Domestic inflation: Rising; Domestic productivity: Falling
Growth in the world economy: Falling; Domestic inflation: Falling; Domestic productivity: Rising
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.