A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2014 · Q271 Mark

What is the most likely consequence of an increase in a country's balance of payments deficit?

Aan increase in the foreign value of the currency of the country

Ban increase in the level of income within the country

Creduction in the quantity of money within the country

Dreduction in unemployment within the country

✓ Correct answer

C: reduction in the quantity of money within the country

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2014 Paper 1 Variant 2, question 27.

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