comparison with correct data and units (£billion and index points) for both variables from Extract D A1\n- Identifies a second significant point of comparison M1\n- Supports the second comparison with correct data and units (£billion and index points) for both variables from Extract D A1","marks":4,"order":0,"markingRubric":null,"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null},{"id":"41d18295-9b09-44c0-b232-5f26ca39d1ce","revisionId":"3209901f-9c18-4d4c-ae66-60173f0b2bd9","questionNumber":null,"questionType":"LA","specification":"","difficulty":3,"difficultyBand":"medium","totalMarks":3,"sourceTitle":null,"calculatorUse":null,"parts":[{"id":"5b80a681-13e3-43f9-92b2-0f3bfada2420","label":null,"content":"Define the term ‘narrowing current account surplus’ as used in **Extract B** (lines 4–5).","markscheme":"- Defines a current account surplus as a situation where the total value of credit flows (exports of goods and services, and income/transfer inflows) exceeds the total value of debit flows (imports and income/transfer outflows) B1\n- Identifies the key components of the current account, including trade in goods and services, primary income, and secondary income B1\n- Explains that ‘narrowing’ means this positive balance (surplus) is decreasing in magnitude (the gap between inflows and outflows is shrinking) over a given period of time B1","marks":3,"order":0,"markingRubric":null,"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null},{"id":"46acab0a-9f1f-4a2f-b5ad-e6ba250bd52d","revisionId":"51a214b8-c918-4e34-8705-1b08d6e0d826","questionNumber":null,"questionType":"MC","specification":"A country operating under a fixed exchange rate system experiences a persistent balance of payments deficit, putting downward pressure on its currency. If the central bank is committed to maintaining the exchange rate peg without resorting to a formal devaluation, which of the following is most likely to occur?","difficulty":7,"difficultyBand":"medium","totalMarks":1,"sourceTitle":null,"calculatorUse":null,"parts":[],"options":[{"id":"ee9c12ff-cf88-42c7-9c5e-cadb3cca3493","content":"An accumulation of foreign currency reserves as the central bank buys foreign assets to maintain the peg.","correct":false,"markscheme":"Incorrect because the central bank must sell, not buy, foreign currency reserves to purchase its own currency and support the peg, which depletes reserves.","order":0},{"id":"1130460b-9461-4573-9635-2a4665ade521","content":"A contractionary monetary policy and a reduction in domestic aggregate demand.","correct":true,"markscheme":"Correct because defending the peg against downward pressure requires higher interest rates to attract capital inflows and lower domestic spending on imports.","order":1},{"id":"1da03bc9-0a8a-4bd5-81b5-2fd60735fe8c","content":"An expansionary fiscal policy to stimulate domestic production and export industries.","correct":false,"markscheme":"Incorrect because expansionary fiscal policy would boost domestic aggregate demand and national income, increasing import spending and further worsening the balance of payments deficit.","order":2},{"id":"3450987c-324d-4152-bb66-b7a93853b4c6","content":"A reduction in domestic interest rates to prevent speculative short-term capital inflows.","correct":false,"markscheme":"Incorrect because lowering interest rates would cause capital flight (outflows) and worsen the downward pressure on the currency.","order":3}],"explanation":null,"firstAttemptFullMarks":null}],"subjectCode":"a_level_economics__aqa","summaries":[{"id":"004f068a-0476-4d27-94e9-d66b46ed72f0","difficultyBand":"easy","calculatorUse":null},{"id":"00d3aa4f-4dc8-434f-a352-e09e853e415a","difficultyBand":"medium","calculatorUse":null},{"id":"0476b406-0f24-4315-b4af-57e59c55e044","difficultyBand":"hard","calculatorUse":null},{"id":"0540a17e-34f5-4113-8180-dc2a8711db12","difficultyBand":"hard","calculatorUse":null},{"id"

2.6 The international economy (A-level only)

Question 29

2.6 The international economy (A-level only) Questions

2.6 The international economy (A-level only)

Question 29

2.6 The international economy (A-level only) Questions