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CAIE A-Level Economics AS 6.3.4 Current Account Imbalance Effects Questions

Practise explaining domestic and external consequences of current-account deficits and surpluses with CAIE Economics AS questions.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Explain consequences of current-account deficits and surpluses for the domestic and external economy.

CAIE A-Level Economics AS 6.3.4 Current Account Imbalance Effects Questions question 1

[Maximum number: 1]

The graph shows the change in the current account of Belgium's balance of payments from 2016 to 2017.

Figure for Question CAIE A-Level Economics AS 6.3.4 Current Account Imbalance Effects Questions question 1 — CAIE A-Level Economics AS

What will be the most likely impact of the change shown by the graph on Belgium's domestic economy?

A

a fall in the rate of economic growth

B

a fall in the foreign currency reserves

C

a fall in the number of unemployed

D

a fall in the rate of inflation

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