A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2018 · Q291 Mark
A country has a deficit on the current account of the balance of payments. Which policy would be expected to increase the deficit?
Aan appreciation of the exchange rate
Ban increase in domestic productivity
Can introduction of import quotas
Drise in subsidies to domestic firms
✓ Correct answer
A: an appreciation of the exchange rate
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