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 rate | Exchange rate of the £ | UK real household disposable incomes | |
|---|---|---|---|
| A | Decrease | Decrease | Decrease |
| B | Increase | Increase | Increase |
| C | Decrease | Increase | Increase |
| D | Increase | Decrease | Increase |
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
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.