Day: May 17, 2023

Why might a rise in domestic interest rates improve a country’s balance of payments on current account?

Select ONE answer:

1. Domestic firms will become more competitive.
2. It will result in a fall in the exchange rate.
3. It will result in a reduction in spending.
4. There will be an inflow of short-term capital

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

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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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