DP Economics Questionbank
Current account deficits
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Description
[N/A]Directly related questions
- 20N.3.HL.TZ0.3f: Explain two methods that a government could use to correct a persistent current account deficit.
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20N.2.HL.TZ0.2b:
Using price elasticity of demand (PED) data from the text and the J-curve effect, explain the most likely impact of “the falling value of the Australian dollar” on Australia’s current account (paragraph [4]).
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16N.2.SL.TZ0.4b:
Using an exchange rate diagram, explain how the large current account deficit may have affected the value of the Ghanaian cedi.
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17M.2.HL.TZ0.02a.i:
Define the term current account deficit indicated in bold in the text (paragraph 1).
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17M.3.HL.TZ0.02g.ii:
Following the depreciation, it is observed that the current account balance worsens initially, but improves after a certain period of time. Explain why this might be expected to happen.
- 18M.3.HL.TZ0.3i: The government of Urbania is concerned that the rate of inflation is significantly higher than in...
- 18M.3.HL.TZ0.3j: Outline one method, other than attempting to reduce the value of its currency, which may be used...
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18M.3.HL.TZ0.3k:
Explain how a depreciation of the Urbanian dollar ($) might result in a J-curve effect.
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19M.2.HL.TZ0.2d:
Using information from the text/data and your knowledge of economics, discuss the effects of the increasing current account deficit on Pakistan’s economy.
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19N.2.SL.TZ0.2a.ii:
Define the term current account deficit indicated in bold in the text (paragraph [4]).
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19N.2.HL.TZ0.2d:
Using information from the text/data and your knowledge of economics, discuss the implications of Turkey’s persistent current account deficit.
Sub sections and their related questions
The relationship between the current account and the exchange rate
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16N.2.SL.TZ0.4b:
Using an exchange rate diagram, explain how the large current account deficit may have affected the value of the Ghanaian cedi.
-
17M.2.HL.TZ0.02a.i:
Define the term current account deficit indicated in bold in the text (paragraph 1).
-
19N.2.SL.TZ0.2a.ii:
Define the term current account deficit indicated in bold in the text (paragraph [4]).
Implications of a persistent current account deficit
- 18M.3.HL.TZ0.3i: The government of Urbania is concerned that the rate of inflation is significantly higher than in...
-
19M.2.HL.TZ0.2d:
Using information from the text/data and your knowledge of economics, discuss the effects of the increasing current account deficit on Pakistan’s economy.
-
19N.2.HL.TZ0.2d:
Using information from the text/data and your knowledge of economics, discuss the implications of Turkey’s persistent current account deficit.
Methods to correct a persistent current account deficit
- 18M.3.HL.TZ0.3j: Outline one method, other than attempting to reduce the value of its currency, which may be used...
- 20N.3.HL.TZ0.3f: Explain two methods that a government could use to correct a persistent current account deficit.
The Marshall-Lerner condition and the J-curve effect
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17M.3.HL.TZ0.02g.ii:
Following the depreciation, it is observed that the current account balance worsens initially, but improves after a certain period of time. Explain why this might be expected to happen.
-
18M.3.HL.TZ0.3k:
Explain how a depreciation of the Urbanian dollar ($) might result in a J-curve effect.
-
20N.2.HL.TZ0.2b:
Using price elasticity of demand (PED) data from the text and the J-curve effect, explain the most likely impact of “the falling value of the Australian dollar” on Australia’s current account (paragraph [4]).
