Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

In June 2013, the Governor of the Bank of Namibia stated that the Central Bank’s lending rate would stay low for as long as inflation stayed low. What would not create a risk of inflation?

  • Aincreased output in the mining, manufacturing and construction industries
  • BNamibian dollar depreciation against the currencies of its trading partners
  • Csevere weather problems that harm crop production
  • Dthe Namibian Government’s policy of increased public expenditure

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