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2.6 The international economy (A-level only)

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Question 5

All other things being equal, a sustained rise in the exchange rate of a nation's currency is likely to

A

reduce aggregate demand because it can increase the foreign currency price of exports.

B

reduce unemployment because it makes domestic products more competitive abroad.

C

increase aggregate demand because it lowers the domestic currency price of imports.

D

reduce unemployment because it makes foreign products less competitive in the domestic market.

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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