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2.6 The international economy (A-level only)

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Question 8

All other things being equal, which of the following developments is most likely to lead to a narrowing of a country's deficit on the current account of its balance of payments?

A

A depreciation of the domestic currency when the sum of the price elasticities of demand for exports and imports is less than 111

B

An increase in the domestic household marginal propensity to save

C

A sustained rise in the domestic inflation rate relative to that of its main trading partners

D

The adoption of an expansionary fiscal policy combined with 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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