IB Economics HL 4.6.3 Interdependence between accounts Question Bank
Practise IB Economics SL/HL 4.6.3 by applying interdependence between accounts concepts to exam-style questions.
- Syllabus
- First assessment 2022
- Course
- Economics HL
- Level
- HL
Exam points
- identify the relevant model, concept or evidence
- apply the correct subject framework to the question
- evaluate the result using clear evidence and subject terminology
4.6.3—Interdependence between accounts question 1
Table 1 shows the gross domestic product (GDP) of the United States of America (USA) economy from 2020 to 2023. The USA is not the fastest growing economy in the world, but it is the largest. It also has the largest budget deficit and the largest current account deficit in the world. As a result, the actions of its central bank, the Federal Reserve, always make news.
Table 1
Using Table 2, calculate the size of the financial account for Quarter 4 (Q4) only.
The USA recorded a trade deficit of USD 819 billion in 2023. This was a slight reduction from 2022, when it was USD 951 billion. One of the reasons for the fall in the trade deficit could be the exchange rate. In the final four months of the year, the USD depreciated against the Chinese Yuan (CNY). China is the USA's largest trading partner, even though recent trade relations between the two countries have been characterized by tariffs and retaliatory measures. Figure 1 shows the price of the USD in terms of the CNY from September to December 2023.
Figure 1
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