An inflation-prone economy operating near full employment experiences a sudden, substantial appreciation in the external value of its currency within a floating exchange rate system.
Evaluate the possible macroeconomic consequences for an economy of a rise in the exchange rate of its currency.
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.