Economics 9708 · AS & A Level · 6.3

6.3 — practice question

(a)[8]

Explain why some countries repeatedly run a deficit on the current account of the balance of payments.

(b)[12]

Discuss the extent to which expenditure-switching policies and expenditure-reducing policies might be able to lessen such a deficit.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge/understanding: define the current account of the balance of payments (trade in goods, services plus other income)” …

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