A-LevelEconomicsMacroeconomic Policies (Conflicting Objectives)May/June 2016Paper 1 Q301 Mark
Which policy, adopted by a government with the intention of reducing the rate of inflation, might cause a greater deficit on the balance of payments?
Ahigher foreign exchange rates for its currency
Bhigher interest rates for domestic customers
Chigher subsidies to domestic producers
Dhigher tax rates on consumer incomes
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of macroeconomic policies (conflicting objectives) 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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