All other things being equal, a decrease in the exchange rate of the pound against other currencies due to a fall in interest rates is most likely to cause an increase in the UK's
volume of imported goods.
level of cyclical unemployment.
rate of domestic inflation.
surplus on the financial account of the balance of payments.
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.