A-LevelEconomicsInternational economic issues9708/12 · May/June 2025 · Q291 Mark

A country is experiencing a deficit on the current account of its balance of payments. Which policy decision could reduce the deficit?

Adecrease in income tax rates

Bincrease in exchange rates

Cincrease in government spending

Dincrease in import tariffs

✓ Correct answer

D: increase in import tariffs

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2025 Paper 1 Variant 2, question 29.

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