All other things being equal, which one of the following is most likely to cause a country's current account deficit on the balance of payments to widen?
A rise in the rate of unemployment in the domestic economy
A sustained appreciation of the domestic currency's exchange rate
An increase in the rate of economic growth among the country's major trading partners
A fall in domestic inflation relative to the rate of inflation in competitor nations
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.