A-LevelEconomicsInternational economic issues9708/12 · May/June 2023 · Q231 Mark

Which combination of policies would be most effective in reducing a balance of payments current account surplus? [Table 23.1]

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Adecrease in tariffs on imports: no, a devaluation of the exchange rate: yes, an expansionary monetary policy: no

Bdecrease in tariffs on imports: no, a devaluation of the exchange rate: no, an expansionary monetary policy: yes

Cdecrease in tariffs on imports: yes, a devaluation of the exchange rate: no, an expansionary monetary policy: yes

Ddecrease in tariffs on imports: yes, a devaluation of the exchange rate: yes, an expansionary monetary policy: no

✓ Correct answer

C: decrease in tariffs on imports: yes, a devaluation of the exchange rate: no, an expansionary monetary policy: yes

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2023 Paper 1 Variant 2, question 23.

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