Question
The scenario states, The current account is one of two primary components of the balance of payments. Identify the other component. (2 marks) C. i.
The scenario states, "The current account is one of two primary components of the balance of payments." Identify the other component. (2 marks)
C. i. Explain how a low savings rate can contribute to a country's current account deficit. (4 marks)
ii. Recommend TWO (2) measures the government could implement to reduce the country's importation levels. (4 marks)
D. Suggest ONE (1) reason for the current account surplus recorded in 2020. (4 marks)
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
