A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2025 · Q261 Mark

A country with a floating exchange rate has a large deficit on the current account of the balance of payments. What is most likely to decrease as a consequence of this deficit?

Acompetitiveness of the country's products

Blevel of employment in the country

Cprices of exports from the country

Drate of inflation in the country

✓ Correct answer

C: prices of exports from the country

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2025 Paper 1 Variant 2, question 26.

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