Economics 9708 · AS & A Level · 6.3

6.3 — practice question

(a)[8]

Describe the four parts of the current account of the balance of payments. Explain what could lead to a deficit in this account.

(b)[12]

Discuss the ways in which expenditure-reducing and expenditure-switching policies try to remove a current account deficit. Assess which approach is preferable.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and Understanding section: Brief outline of the four parts of the current account (1 mark for each part)” …

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