A country reduces its current account deficit by cutting household spending during a recession. Which evaluation is best?
The improvement must raise employment
The current account is the only economic objective
The external balance may improve, but weaker spending can reduce growth and employment
A recession cannot affect imports
22 exam-style questions on OCR GCSE Economics 4.2 Balance of payments, covering 4.2.1 Balance of payments on current account, 4.2.2 Balanced account, surplus and deficit, 4.2.3 Calculate deficits and surpluses, 4.2.4 Analyse exports and imports data, 4.2.5 Importance of the balance of payments, and 4.2.6 Causes of surpluses and deficits. Each one has a worked solution and a mark scheme showing where the marks go.