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2.6 The international economy (A-level only)

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Question 54

The annual rate of inflation in an economy falls from 5.0% to 1.5%, while the annual rate of inflation of its main trading partners remains stable at 3.5%.

Assuming exchange rates remain unchanged, which of the following is most likely to occur in the long term for this economy?

A

The volume of domestic exports to trading partners will increase.

B

The current account of the balance of payments will deteriorate.

C

Domestic products will become less price competitive.

D

The volume of imports from trading partners will increase.

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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