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A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2020 · Q191 Mark

What will lead to an immediate improvement in the balance of payments deficit on current account?

Afall in interest rates
Breduction in dividend payments to foreign investors
Creduction in the standard rate of income tax
Dan increase in the level of government current expenditure

✓ Correct answer

B: reduction in dividend payments to foreign investors

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Topic
International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2020 Paper 1 Variant 2, question 19.

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