A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2025 · Q201 Mark
High economic growth is often accompanied by a worsening of the current account of the balance of payments. Which reason for this trend is not valid?
AEconomic growth raises domestic consumption, leaving very little to sell to overseas consumers.
BEconomic growth raises domestic output, leading to lower prices and more price-competitive goods both at home and abroad.
CEconomic growth raises incomes and leads to rising demand for foreign goods.
DEconomic growth results in rising requirements of inputs from other countries.
✓ Correct answer
B: Economic growth raises domestic output, leading to lower prices and more price-competitive goods both at home and abroad.
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