Economics 0455 · IGCSE · Current account of balance of payments

Current account of balance of payments — practice question

A country records a surplus on the current account of its balance of payments. What change would be most likely to push the country into a deficit?

  • Adevaluation of its fixed exchange rate
  • Bgovernment subsidies to its exporters
  • Cimproved technology in other countries
  • Dproductivity increases in its export industries

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