CAIE A-Level Economics AS 6.5.2 Policies for Current Account Imbalances Questions

Practise analysing how fiscal, monetary, supply-side and protectionist policies affect imports, exports and current-account imbalances using CAIE Economics AS evidence.

Exam points

Analyse how fiscal, monetary, supply-side and protectionist policies change imports, exports and the current-account balance.

[Maximum number: 1]

Which combination of policies would be most effective in reducing a balance of payments current account surplus?

a decrease in
tariffs on imports

a devaluation of the
exchange rate

an expansionary
monetary policy

yes

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CAIE A-Level Economics AS 6.5.2 Policies for Current Account Imbalances Questions question 1