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2.6 The international economy (A-level only)

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Question 68

All other things being equal, which one of the following combinations indicates the most likely short-run economic consequences for an economy of a significant depreciation in the external value of its currency under a floating exchange rate system?

Import VolumesDomestic InflationUnemployment
ADecreaseDecreaseIncrease
BIncreaseIncreaseDecrease
CDecreaseIncreaseDecrease
DIncreaseDecreaseIncrease
A

Import Volumes: Decrease, Domestic Inflation: Decrease, Unemployment: Increase

B

Import Volumes: Increase, Domestic Inflation: Increase, Unemployment: Decrease

C

Import Volumes: Decrease, Domestic Inflation: Increase, Unemployment: Decrease

D

Import Volumes: Increase, Domestic Inflation: Decrease, Unemployment: 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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