Skip to content

Course home

Sign up

2.6 The international economy (A-level only)

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687
Question 37

The table below shows the trade-weighted effective exchange rate index for a country over a four-year period.

YearEffective Exchange Rate Index (Base Year = 100)
Year 196.2
Year 2100.0
Year 3104.8
Year 4110.5

All other things being equal, which of the following is the most likely consequence of the changes in the exchange rate index shown in the table?

A

The domestic currency price of imported raw materials increased, causing cost-push inflation.

B

The international price competitiveness of domestic export-oriented firms improved.

C

There was a dampening effect on domestic inflationary pressures.

D

Foreign holidays became more expensive for domestic residents.

Markscheme

2.6 The international economy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.6 The international economy (A-level only)

310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.

Question bank