Economics Multiple Choice Question – 12 May 2021

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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