A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2019 · Q281 Mark

Which policy would assist in reducing a deficit within the balance of payments?

Aincreasing interest rates

Bincreasing the money supply

Creducing subsidies to exporting industries

Dreducing the level of direct taxation

✓ Correct answer

A: increasing interest rates

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2019 Paper 1 Variant 2, question 28.

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