Economics Multiple Choice Question – 25 April 2023

What is the most likely consequence of an increase in a country’s balance of payments deficit?

Select ONE answer:

1. an increase in the foreign value of the currency of the country
2. an increase in the level of income within the country
3. a reduction in the quantity of money within the country
4. a reduction in unemployment within the country

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 3

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

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