Economics 9708 · AS & A Level · 6.3

6.3 — practice question

Nigeria’s balance of payments current account balance moved from US$899 m in 2014 to US$ –15 763 m in 2015. If all other factors remain unchanged, what is likely to happen in 2015 to GDP and to the exchange rate in Nigeria?

  • AGDP falls; exchange rate appreciates
  • BGDP falls; exchange rate depreciates
  • CGDP rises; exchange rate appreciates
  • DGDP rises; exchange rate depreciates

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