A-LevelEconomicsInternational economic issues9708/12 · May/June 2012 · Q261 Mark
A country has a fixed exchange rate. What is likely to result in an improvement in its balance of payments?
Adecrease in interest rates in foreign countries
Bdecrease in the country's interest rates
Cdecrease in the income of foreign countries
Dan increase in the country's national income
✓ Correct answer
A: decrease in interest rates in foreign countries
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