A government wishes to reduce the deficit on the current account of the balance of payments. Which one of the following combinations of policies is likely to be the most successful?
Decrease in the exchange rate, Decrease in direct tax rates
Decrease in the exchange rate, Increase in direct tax rates
Increase in the exchange rate, Decrease in direct tax rates
Increase in the exchange rate, Increase in direct tax rates
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.