All other things being equal, a sustained appreciation in a country's exchange rate is most likely to
increase a negative output gap and reduce demand-pull inflation.
improve the current account balance and increase actual economic growth.
decrease unemployment and reduce cost-push inflation.
decrease a negative output gap and increase cost-push inflation.
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.