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2.6 The international economy (A-level only)

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Question 7

The table below shows different combinations of the foreign currency price of Canadian exports and the level of Canadian aggregate demand. All other things being equal, which combination, A, B, C or D, is the most likely consequence of a rise in the exchange rate of the Canadian dollar?

The foreign currency price of Canadian exportsCanadian aggregate demand
AFallsRises
BRisesFalls
CFallsFalls
DRisesRises
A

The foreign currency price of Canadian exports falls, Canadian aggregate demand rises

B

The foreign currency price of Canadian exports rises, Canadian aggregate demand falls

C

The foreign currency price of Canadian exports falls, Canadian aggregate demand falls

D

The foreign currency price of Canadian exports rises, Canadian aggregate demand rises

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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