Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

During a stated period, money income in an economy rose by 6%. In that same period, the average level of prices increased by 4%. What can be concluded from this?

  • AReal income increased by 2%.
  • BThe income velocity of circulation decreased by 2%.
  • CThe money supply increased by 10%.
  • DThe volume of output decreased by 2%.

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