5 marksBalance of Payments and Exchange Rates

CSEC Economics · May/June 2008 · Paper 2 · Question 7(d)

Discuss TWO ways in which a rise in oil prices will affect the balance of payments of a non-oil producing economy.

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Other parts of this question

7(a)Differentiate between the 'terms of trade' and the 'balance of trade' of a country.[4 marks]
7(b)List the component parts of the balance of payments.[3 marks]
7(c)Explain TWO measures that can be used to correct a balance of payments deficit.[8 marks]

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