What would be the most effective long-term solution to a persistent deficit on the current account of the balance of payments?

A.
B.
C.
D.
Economics
IGCSE&ALevel
CAIE
Exam No:9708_s25_qp_34 Year:2025 Question No:25

Answer:

B

Knowledge points:

11.1.2 effect of fiscal, monetary, supply-side, protectionist and exchange rate policies on the balance of payments
6.5.1 government policy objective of stability of the current account
6.5.2 effect of fiscal, monetary, supply-side and protectionist policies on the current account

Solution:

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