Skip to content

Course home

6.5.2 effect of fiscal, monetary, supply-side and protectionist policies on the current account

How does an expenditure-reducing policy improve the current account?

A

Expenditure-reducing policies lower total demand, reducing spending on imports.

B

Expenditure-reducing policies raise total demand, increasing spending on exports.

C

Expenditure-reducing policies increase imports by making foreign goods more competitive.

D

Expenditure-reducing policies lower interest rates, increasing investment in exports.

6.5.2 effect of fiscal, monetary, supply-side and protectionist policies on the current account Flashcards

  1. Intl A Level
  2. /Economics
  3. /6.5.2 effect of fiscal, monetary, supply-side and protectionist policies on the current account

22 flashcards on CIE Intl A Level Economics 6.5.2 effect of fiscal, monetary, supply-side and protectionist policies on the current account: the key terms and definitions you need to recall.