Economics 9708 · AS & A Level · Labour market

Labour market — practice question

An economy is experiencing a balance of payments surplus that it wants to remove. To meet this aim, which mix of policies would be most suitable?

  • Aa depreciation of the currency and an increase in government spending
  • Ban appreciation of the currency and a cut in interest rates
  • Can increase in the money supply and a pay freeze
  • Dincreases in both direct and indirect taxation

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