Economics 9708 · AS & A Level · 6.3

6.3 — practice question

What could cause a country to shift from a surplus to a deficit on the current account of the balance of payments?

  • Aa depreciating exchange rate combined with a high rate of inflation and falling productivity
  • Ba depreciating exchange rate combined with a low rate of inflation and rising productivity
  • Can appreciating exchange rate combined with a high rate of inflation and falling productivity
  • Dan appreciating exchange rate combined with a low rate of inflation and rising productivity

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