Economics Multiple Choice Question – 12 May 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Economics
sacks of coffee beans
Photo by Kelly Lacy on Pexels.com

An economy has a balance of payments surplus, which it wishes to eliminate.

In order to achieve this objective, which combination of polices would be MOST appropriate?

Select ONE answer:

  1. a depreciation of the currency and an increase in government spending
  2. an appreciation of the currency and a cut in interest rates
  3. an increase in the money supply and a pay freeze
  4. increases in both direct and indirect taxation

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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