QCEVault

Economic management — Question 8

QCAA 2021, Paper 1 · 1 mark

Q8 · 2021 · External assessmentUnclassified1 mark

QUESTION 8

Assume the current account has shown the trend in the graph for the last 16 quarters.

Economics question figure

($ Balance billions)

Which fiscal strategy would be most effective in addressing this issue in Australia (ceteris paribus)?

(A) _ stimulating the economy to encourage spending on domestic goods and services

(B) liberalising trade policies to make the economy more competitive

(C) replacing overseas borrowing with domestic sources of finance

(D) improving the efficiency of the foreign exchange market

Question linkQCAA assessment resources

Related questions

  1. Q1 · 2025 QCAA · Paper 1 · 1 mark
    QUESTION 1 Identify a transfer payment in the federal budget. (A) military personnel wages (B) aged pension payments (C) new highway costs (D) indirect taxation
    Economic management
  2. Q2 · 2025 QCAA · Paper 1 · 1 mark
    QUESTION 2 What happens when the Reserve Bank of Australia decides to decrease the cash rate? (A) Bank deposit rates rise. (B) Banks pass on the rate change as soon as possible. (C) Financial institutions raise variable and fixed loan rates. (D) Interest rates change depending on each financial institution.
    Economic management
  3. Q3 · 2025 QCAA · Paper 1 · 1 mark
    QUESTION 3 Which reason is a justification for applying a demand-side economic policy in Australia? (A) to decrease cyclical unemployment (B) to maximise real economic growth (C) to enhance dynamic efficiency (D) to reduce business regulations
    Economic management
  4. Q4 · 2025 QCAA · Paper 1 · 1 mark
    QUESTION 4 If an economy is in an expansionary phase, automatic stabilisers should (A) increase employment. (B) raise income tax rates. (C) increase income tax revenues. (D) raise unemployment payments.
    Economic management