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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Oct/Nov 2015 · Q301 Mark

In a time of recession, a government decided to sell a loss-making state-owned industry to a foreign private company. What is the most likely immediate result?

Aan improvement in the financial account of the balance of payments
Ban improvement in the level of unemployment
Can improvement in the rate of inflation
Dan improvement in the trade account of the balance of payments

✓ Correct answer

A: an improvement in the financial account of the balance of payments

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2015 Paper 1 Variant 2, question 30.

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