Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

At what time is a deficit in the current account of the balance of payments likely to deteriorate?

  • Awhen the government adopts a deflationary macroeconomic policy
  • Bwhen the government devalues the currency
  • Cwhen the prices of imported products that are demand-inelastic increase significantly
  • Dwhen tariffs are placed on imported products that are demand-elastic

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