Economics Multiple Choice Question – 29 April 2023

Which policy would reduce a balance of payments deficit on the current account in the short run?

Select ONE answer:

1. a reduction in government subsidies to exporters
2. a reduction in the rate of interest
3. a rise in direct taxation
4. incentives to attract foreign capita

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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