A-LevelEconomicsMacroeconomic PolicyMay/June 2012Paper 1 Q301 Mark
The currency of a country is fixed by the Central Bank at a certain value in terms of US dollars. If currency devaluation is not possible, which policy might be used to reduce a current account deficit on the balance of payments?
Adecrease in interest rates
Bdecrease in tax rates
Cdecrease in tariffs on imports
Ddecrease in public expenditure
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of macroeconomic policy 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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