Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

Which combination of changes is most likely, in the short run, to cause a country’s inflation rate to fall?

  • Aexchange rate: higher; indirect taxes: higher
  • Bexchange rate: higher; indirect taxes: lower
  • Cexchange rate: lower; indirect taxes: higher
  • Dexchange rate: lower; indirect taxes: lower

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