Economics 9708 · AS & A Level · 6.5

6.5 — practice question

A country’s balance of payments current account is in deficit. What measures could bring it back to equilibrium, assuming the Marshall-Lerner condition holds?

  • Aincrease the exchange rate
  • Breduce income tax
  • Creduce primary income
  • Dsubsidise domestic producers

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