Economics 9708 · AS & A Level · 6.4

6.4 — practice question

A country operates a fixed exchange rate. What would be likely to cause a worsening of its balance of payments?

  • Aa decrease in interest rates in foreign countries
  • Ba decrease in the country’s interest rates
  • Ca decrease in the country’s National Income
  • Dan increase in the income of foreign countries

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI