A-LevelEconomicsThe macroeconomy9708/12 · May/June 2020 · Q191 Mark

What is likely to cause a decrease in aggregate demand?

Aan appreciation in the exchange rate

Ban improvement in consumer confidence

Can increase in government expenditure

Dan increase in the money supply

✓ Correct answer

A: an appreciation in the exchange rate

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2020 Paper 1 Variant 2, question 19.

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