A sustained rise in the exchange value of the Great British Pound (GBP, £) relative to the Euro (€) would be expected to affect the UK economy because it is most likely to lead to
a fall in the rate of inflation.
an increase in aggregate demand.
an increase in the Sterling (£) price of imported components.
a decrease in the Euro (€) price of UK exports.
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.