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2.6 The international economy (A-level only)

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Question 69

An economy is suffering from both a severe economic slowdown and a structural current account deficit on its balance of payments. Which one of the following policy combinations is most likely to help resolve both problems simultaneously?

A

A depreciation of the exchange rate and an increase in government investment in export-oriented industries.

B

An appreciation of the exchange rate and a decrease in income tax rates.

C

An increase in interest rates and a reduction in import tariffs.

D

A reduction in government spending and an appreciation of the exchange rate.

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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