A-LevelEconomicsInternational Trade and FinanceFeb/Mar 2020Paper 1 Q281 Mark
A country with a fixed exchange rate and a deficit in the current account of its balance of payments enters a recession. It devalues its currency in an effort to correct its balance of payments. Under which conditions is the deficit most likely to improve?
A0.3, 0.5, 0.8
B0.4, 0.8, 0.8
C0.3, 0.5, 1.2
D0.4, 0.8, 1.2
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of international trade and finance within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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