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2.3 How the government manages the economy

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Question 13

A UK firm sells most of its machinery to customers in the USA. The Bank of England raises the base rate, while interest rates in other countries do not change.

Which outcome is most likely?

[1]
A

The pound falls in value and the firm's machinery becomes more expensive for US customers

B

The pound rises in value and the firm's machinery becomes cheaper for US customers

C

The pound rises in value and the firm's machinery becomes more expensive for US customers

D

The pound falls in value and the firm's machinery becomes cheaper for US customers

Markscheme

2.3 How the government manages the economy Questions

  1. GCSE
  2. /Economics
  3. /2.3 How the government manages the economy

104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.

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