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Question 20N.3.HL.TZ0.3f

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Date November 2020 Marks available [Maximum mark: 4] Reference code 20N.3.HL.TZ0.3f
Level HL Paper 3 Time zone TZ0
Command term Explain Question number f Adapted from N/A
f.
[Maximum mark: 4]
20N.3.HL.TZ0.3f
(f)

Explain two methods that a government could use to correct a persistent current account deficit.

[4]

Markscheme

Examiners report

Most candidates had a good understanding of methods to correct a persistent current account deficit. One fairly common mistake, however, was to suggest that inflows on the financial/capital account should be encouraged. Furthermore, some candidates responded with a very narrow focus, providing two different types of trade protection rather than two methods as indicated in the subject guide.