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4.1 International economics

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Question 27

Explain the likely impact of the change in the exchange rate of the Euro shown in the graph from 1st March 2021 to 1st March 2022 on the Eurozone current account of the balance of payments.

Line graph showing the exchange rate of the Euro against the US Dollar (EUR/USD) from January 2021 to January 2023. The vertical axis shows the exchange rate (USD per 1 EUR) ranging from 1.00 to 1.30. The horizontal axis shows time in months from January 2021 to January 2023. On 1st March 2021, the rate is plotted at 1.22 USD per EUR. The line trends steadily downwards to reach 1.08 USD per EUR on 1st March 2022, after which it fluctuates slightly, ending at 1.07 USD in January 2023.

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4.1 International economics Questions

  1. A Level
  2. /Economics
  3. /4.1 International economics