Which of the following would cause disequilibrium in the balance of payments? 1. the change in the level of domestic demand 2. variations in the degree of Inflation 3. international capital flows Select the correct answer using the codes given above: (A) 1, 2 and 3 (B) 1 and 2 (C) 2 and 3 (D) 1 and 3

UoH 2018 Question 65: Balance of payments and exchange rates

Which of the following would cause disequilibrium in the balance of payments?

Select the correct answer using the codes given above:

Tap an option to check your answer.

Checking your account…

Balance of payments and exchange rates has come up 120 times in 7 exams since 2007.

This question is on Balance of payments disequilibrium and adjustment, part of Balance of payments and exchange rates in International Economics.

What causes a deficit or surplus and how it is corrected.

TestStop has 8 past-paper questions on this subtopic; the nearest in year are below.