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2.6 The international economy (A-level only)

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Question 21

All other things being equal, which one of the following combinations is most likely to lead to an improvement in the UK balance of payments on current account?

UK inflation rateExchange rate of the £UK real household disposable incomes
ADecreaseDecreaseDecrease
BIncreaseIncreaseIncrease
CDecreaseIncreaseIncrease
DIncreaseDecreaseIncrease

UK inflation rate: Decrease; Exchange rate of the £: Decrease; UK real household disposable incomes: Decrease

UK inflation rate: Increase; Exchange rate of the £: Increase; UK real household disposable incomes: Increase

UK inflation rate: Decrease; Exchange rate of the £: Increase; UK real household disposable incomes: Increase

UK inflation rate: Increase; Exchange rate of the £: Decrease; UK real household disposable incomes: Increase

2.6 The international economy (A-level only) Questions

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