Which one of the following is most likely to lead to a reduction in the current account deficit on the balance of payments for the Canadian economy?
A rise in Canadian labor productivity relative to its main trading partners.
An increase in the real disposable income of Canadian households.
A sustained appreciation in the exchange rate of the Canadian dollar.
An increase in the rate of inflation in Canada relative to the USA and Europe.
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.