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2.6 The international economy (A-level only)

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Question 17

All other things being equal, a significant depreciation of the South African rand (ZAR) against the US dollar (USD) in a floating exchange rate system would be expected to lead to

A

an improvement in South Africa's terms of trade.

B

a decrease in the domestic currency price of imported intermediate goods.

C

an increase in domestic inflationary pressures from both demand-pull and cost-push sources.

D

a decrease in aggregate demand due to a contraction in net exports.

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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