Economics 9708 · AS & A Level · 6.3

6.3 — practice question

At what point is a deficit on the current account of the balance of payments likely to become worse?

  • Awhen a government adopts a deflationary macroeconomic policy
  • Bwhen a government devalues the currency
  • Cwhen prices of essential imported raw materials increase significantly
  • Dwhen tariffs are placed on imported products with a wide range of domestic substitutes

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI