Post Utme Bells University 2024 Economics Question 6

Practice objective / multiple choice question 6 from the 2024 Post Utme Bells University Economics examination.

Post Utme Bells University 2024 Economics Objective / Multiple Choice
Question 6 POST_UTME_BELLS_UNIVERSITY • 2024 • ECONOMICS • objective

Consider a small open economy with a fixed exchange rate. If the country experiences an increase in aggregate demand, what will happen to the balance of payments?

Answer Options

A. The balance of payments will improve due to increased exports.
Correct Answer B. The balance of payments will worsen due to increased imports.
C. The balance of payments will remain unchanged.
D. The balance of payments will improve due to increased imports.
Correct Answer
B
Correct Option:
The balance of payments will worsen due to increased imports.

About This Question

This is Post Utme Bells University 2024 Economics Question 6. It is one of the objective questions from the 2024 Post Utme Bells University Economics examination.

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