Economics 9708 · AS & A Level · Wage determination

Wage determination — practice question

Which action is likely to cause a rise in a country’s balance of payments deficit (disequilibrium) in the short run, but could lessen it in the long run?

  • Aan appreciation of the country’s currency
  • Bsubstantial foreign investment by the country’s residents
  • Cthe introduction of controls on capital outflows
  • Dthe introduction of import quotas

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