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From course:

Economics A Level

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Question:

What are the Consequnces of a Balance of Payment SURPLUS

Author: go kys



Answer:

-This can indictae the Economy is Uncompetitive. -But its not always Bad. It may mean the People are Wealthy to have a lot of Imports, and enjoy a Higher Standard of Living. -However, it can also lead to the Value of the Currency falling, making Imports higher in the Short Run. Inflation! -This also can mean Job losses at Home as Goods being Imported means Less have to be made Domesticallly - Unemployment


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go kys
go kys