Economics 9708 · AS & A Level · 6.3

6.3 — practice question

A country’s current account deficit is greater this year than it was last year. What is the most probable explanation for this rise?

  • ADemand for domestically produced goods has risen.
  • BDomestic inflation has risen faster than the inflation of its major trading partners.
  • CDomestic unemployment has risen.
  • DThe exchange rate has depreciated.

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