Which policy will lead to a fall in the volume of goods imported?
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Cambridge 9708, Paper 1 & 2. 2,092 questions, 2020 to 2026.
Paper 1 multiple-choice questions and Paper 2 data-response/essay questions, from the original Cambridge material. Paper 2 mark schemes and case studies are reproduced as images of the official pages rather than retyped, so nothing is lost or paraphrased; a question tagged under more than one topic appears under each. Tick “Add to my paper” on any question to build a custom practice PDF from the tray in the corner.
Questions on correcting current account imbalances: expenditure-switching and expenditure-reducing policies, devaluation, and the side effects of each approach.
56 past paper questions on this topic since 2020, across 18 exam sessions.
| Year | Paper 1 | Paper 2 | Total | Chart |
|---|---|---|---|---|
| 2026 | 2 | 0 | 2 | |
| 2025 | 4 | 2 | 6 | |
| 2024 | 4 | 4 | 8 | |
| 2023 | 4 | 3 | 7 | |
| 2022 | 9 | 3 | 12 | |
| 2021 | 9 | 2 | 11 | |
| 2020 | 9 | 1 | 10 |
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Which policy will lead to a fall in the volume of goods imported?
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Which policy is not likely to help reduce a current account deficit on the balance of payments?
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A country has a current account deficit on its balance of payments. The government also has a budget deficit.
Which measure to reduce the current account deficit will increase the budget deficit?
DCorrect answer
A country has a persistent deficit on the current account of its balance of payments.
What is most likely to improve the situation in the long run?
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A country is experiencing a deficit on the current account of its balance of payments.
Which policy decision could reduce the deficit?
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, , 30 A country has a current account deficit.
What would be classified as a protectionist measure to restore the current account to equilibrium?
CCorrect answer
Assess the extent to which the use of supply-side policy would be the best way to reduce a deficit on the current account of the balance of payments. [12]


Assess whether it is better to use protectionist policies or contractionary policies to reduce a deficit on the current account of the balance of payments. [12]


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