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CAIE A-Level Economics AS 6.5.1 Current Account Stability Objective Questions

Practise explaining why governments pursue current-account stability and how persistent surpluses can create inflationary pressure using CAIE Economics AS evidence.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Explain why a government may pursue current-account stability, including reducing inflationary pressure from a persistent surplus.

CAIE A-Level Economics AS 6.5.1 Current Account Stability Objective Questions question 1

[Maximum number: 1]

Why may a government seek to reduce a current account surplus on the balance of payments?

A

to lower inflation

B

to lower unemployment

C

to raise the economic growth rate

D

to raise the exchange rate

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