A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2025 · Q281 Mark
A country experiences a rising trade deficit and a current account surplus at the same time. Which combination of events might explain this? Event 1 Event 2
Aglobal recession resulting in decreased prices of commodities Gross National Income (GNI) rises faster than Gross Domestic Product (GDP)
Bincreased subsidies for exporters increased donations received from abroad to combat a humanitarian crisis
Cremoval of restrictions on imports removal of restrictions on the remittance of profits of foreign-owned producers
Drising imports of machinery to help raise exports in the future increased secondary income from workers' remittances from abroad
✓ Correct answer
D: rising imports of machinery to help raise exports in the future increased secondary income from workers' remittances from abroad
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