Economics 2281 · O Level · Current account of balance of payments

Current account of balance of payments — practice question

An estimate suggests that, in 2016, the Olympic Games held in Rio, Brazil drew more than 600 000 overseas visitors. What was likely to be the effect of this number of visitors?

  • Aa depreciation of Brazil’s currency
  • Ba fall in Brazil’s rate of inflation
  • Can increase in the Brazilian government’s budget deficit
  • Da reduction in Brazil’s deficit on the current account of its balance of payments

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