The Balance of Payments: Further Exploration (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
In the AD equation, what does the term (X - M) represent?
In the AD equation, what does the term (X - M) represent?
Net exports
How do exports affect the circular flow of income?
How do exports affect the circular flow of income?
Injection of spending
When does export demand become inflationary rather than reflationary?
When does export demand become inflationary rather than reflationary?
At full employment
When does a current account surplus occur?
When does a current account surplus occur?
When X > M
Which three factors mainly influence a country's current account balance?
Which three factors mainly influence a country's current account balance?
Productivity, inflation, exchange rate
What are the '3 Ds' policies for reducing a current account deficit?
What are the '3 Ds' policies for reducing a current account deficit?
Deflation, direct controls, devaluation
What type of policy is deflation when reducing a current account deficit?
What type of policy is deflation when reducing a current account deficit?
Expenditure-reducing
What does the Marshall-Lerner condition require for successful devaluation?
What does the Marshall-Lerner condition require for successful devaluation?
Export + import elasticities > 1
What is the J-curve effect following devaluation?
What is the J-curve effect following devaluation?
Deficit worsens then improves
Why can large current account surpluses be problematic globally?
Why can large current account surpluses be problematic globally?
One country's surplus is another's deficit