A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2019 · Q301 Mark

Why may a government seek to reduce a current account surplus on the balance of payments?

Ato lower inflation

Bto lower unemployment

Cto raise the economic growth rate

Dto raise the exchange rate

✓ Correct answer

A: to lower inflation

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2019 Paper 1 Variant 2, question 30.

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