All other things being equal, which one of the following is most likely to lead to a reduction in the size of an economy's current account deficit on the balance of payments?
A rise in
the exchange rate of the domestic currency
domestic consumer confidence
domestic labor productivity
unit labor costs of domestic production
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.