A-LevelEconomicsBalance of PaymentsFeb/Mar 2023Paper 1 Q301 Mark
A government raises interest rates to improve the current account of the balance of payments. What might reduce the effectiveness of this policy?
Afall in domestic growth
Bconsumer pessimism
Cincreased domestic saving
Dprice-elastic demand for exports
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of balance of payments 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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