DP Economics
Question 18M.3.HL.TZ0.3i
| Date | May 2018 | Marks available | [Maximum mark: 2] | Reference code | 18M.3.HL.TZ0.3i |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Outline | Question number | i | Adapted from | N/A |
i.
[Maximum mark: 2]
18M.3.HL.TZ0.3i
Table 5 provides information relating to the Balance of Payments for Urbania for 2017.
Table 5
Urbania has a current account deficit of $125 million in 2017.
(i)
The government of Urbania is concerned that the rate of inflation is significantly higher than in its close trading partners.
Outline how Urbania’s relatively high rate of inflation might affect its current account balance.
[2]
Markscheme
