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2.3 Economic performance

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Question 51

Which combination of economic changes is most likely to cause a transition from a low, stable rate of inflation to deflation?

Exchange rate of the domestic currencyDomestic interest ratesAAppreciatingRisingBAppreciatingFallingCDepreciatingRisingDDepreciatingFalling \begin{array}{ccc} & \text{\textbf{Exchange rate of the domestic currency}} & \text{\textbf{Domestic interest rates}} \\ \hline \text{\textbf{A}} & \text{Appreciating} & \text{Rising} \\ \text{\textbf{B}} & \text{Appreciating} & \text{Falling} \\ \text{\textbf{C}} & \text{Depreciating} & \text{Rising} \\ \text{\textbf{D}} & \text{Depreciating} & \text{Falling} \\ \hline \end{array} ABCD​Exchange rate of the domestic currencyAppreciatingAppreciatingDepreciatingDepreciating​Domestic interest ratesRisingFallingRisingFalling​​
A

A

B

B

C

C

D

D

Markscheme

2.3 Economic performance Questions

  1. A Level
  2. /Economics
  3. /2.3 Economic performance

327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.

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