All other things being equal, which one of the following combinations of macroeconomic changes is most likely to result in a deterioration of an economy's balance of payments on current account?
A fall in consumer confidence, an appreciation of the exchange rate, and a fall in domestic productivity growth relative to its competitors.
A rise in consumer confidence, a depreciation of the exchange rate, and a rise in domestic productivity growth relative to its competitors.
A fall in consumer confidence, a depreciation of the exchange rate, and a rise in domestic productivity growth relative to its competitors.
A rise in consumer confidence, an appreciation of the exchange rate, and a fall in domestic productivity growth relative to its competitors.
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.