A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2023 · Q251 Mark
A country's current account deficit is larger this year than last. What is the most likely reason for this increase?
ADemand for domestically produced goods has risen.
BDomestic inflation has risen faster than the inflation of its major trading partners.
CDomestic unemployment has risen.
DThe exchange rate has depreciated.
✓ Correct answer
B: Domestic inflation has risen faster than the inflation of its major trading partners.
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