A-LevelEconomicsBalance of Payments PoliciesFeb/Mar 2016Paper 1 Q291 Mark
Possible policies a government might use to reduce a deficit on the current account of the balance of payments include devaluation, government spending cuts, interest rate rises and tariffs on imports. Which two policies would be classified as expenditure-switching?
Adevaluation and government spending cuts
Bgovernment spending cuts and interest rate rises
Cinterest rate rises and tariffs on imports
Dtariffs on imports and devaluation
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of balance of payments policies 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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