Economics 9708 · AS & A Level · 6.3

6.3 — practice question

Guatemala’s balance of payments on the current account stood at –US$1.6 bn in 2011 and at +US$1.0 bn in 2016. Which factor is most likely to have contributed to this shift in the balance of payments on the current account during this five-year period?

  • Aan appreciation of Guatemala’s currency
  • Ba growth of household incomes in Guatemala
  • Ca lowering of tariffs on goods imported into Guatemala
  • Dproductivity improvements in Guatemala’s export sector

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