Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

A country operating under a floating exchange rate has a substantial deficit on the current account of the balance of payments. What is most likely to fall as a result of this deficit?

  • Acompetitiveness of the country’s products
  • Blevel of employment in the country
  • Cprices of exports from the country
  • Drate of inflation in the country

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