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2.6 The international economy (A-level only)

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Question 37

The table below shows the effective exchange rate index for Country Y in 2018 and 2020.

YearEffective exchange rate index
2018150
2020120

All other things being equal, which one of the following options provides both the correct percentage change in the index from 2018 to 2020 and a valid reason why this change may have occurred?

A

20%20\%20% change; reason: A decrease in interest rates in Country Y

B

20%20\%20% change; reason: An increase in interest rates in Country Y

C

25%25\%25% change; reason: A decrease in interest rates in Country Y

D

25%25\%25% change; reason: An increase in interest rates in Country Y

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.

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