Economics 9708 · AS & A Level · Market failure

Market failure — practice question

A decrease in domestic investment results in higher unemployment. Which other problem could also be seen at the same time?

  • Aan increase in interest rates on loans for house purchase
  • Ban increase in the current account balance of payments deficit
  • Can increase in the government budget deficit
  • Dan increase in the rate of price inflation

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