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2.6 The international economy (A-level only)

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Question 72

Other things remaining equal, a country's current account deficit on its balance of payments is most likely to

A

narrow if the exchange rate of the domestic currency appreciates significantly.

B

worsen if there is an expansion in economic activity and real incomes in partner countries.

C

improve if there is a rise in domestic labour productivity relative to foreign competitors.

D

decrease if the domestic inflation rate rises above the inflation rates of its trading partners.

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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