A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2024 · Q261 Mark

Which policy is most likely to reduce a balance of payments deficit without causing inflation?

Adecreased import quotas

Bdepreciation of currency

Chigher interest rates

Ddecreased import tariffs

✓ Correct answer

C: higher interest rates

Oracle Prep sorts past-paper questions by topic, so you can drill International economic issues and see which topics are most likely to come up next.

Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2024 Paper 1 Variant 2, question 26.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

A country's terms of trade increased from a base year value of 100 to 120 in the following year. If export prices had…

In each country, P and Q, one person can either produce the quantity of X or the quantity of Y shown. In which case d…

A country has a fixed exchange rate. What is likely to result in a deterioration in its balance of payments?

A government school is built by private builders in a residential neighbourhood. The builders ignore the effects of n…

In all market structures, what must firms equate to ensure allocative efficiency? A average cost and average revenue …

The table shows substitution and income effects for a normal good and for an inferior good as the price of the good c…