Economics Multiple Choice Question – 7 April 2022

What is likely to explain an increase in the deficit on a country’s current account of the balance of payments?

Select ONE answer:

1. an increase in government foreign aid to countries abroad
2. an increase in government tax rates
3. an increase in other countries’ exchange rates
4. an increase in the proportion of income saved by the country’s residents

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 1

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

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