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Cambridge IGCSE Economics

6.4.2-6.4.4Causes, consequences and policies for current account imbalances

Causes, consequences and policies for current account imbalances in Cambridge IGCSE Economics: what the syllabus expects you to know, the learning objectives and how to practise.
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Learning objectives

What the syllabus expects you to be able to do.

  1. 6.4.2Explain the reasons for current account deficits and surpluses.
  2. 6.4.3Explain the impact of deficits and surpluses on GDP, employment, inflation and the exchange rate.
  3. 6.4.4Evaluate the policies available to achieve balance of payments stability.

Lessons

  • Current account deficits and surpluses: causes, effects and policies

    40 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Causes, consequences and policies for current account imbalances: sample question

1 mark

Which change is most likely to cause a current account deficit to grow?

Choose one answer

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