A-LevelEconomicsInternational economic issues9708/12 · May/June 2022 · Q231 Mark
A country operates a fixed exchange rate system. What will put pressure on the country to devalue its currency?
Adecrease in the country's inflation rate relative to the inflation rates of other countries
Bdecrease in the tariffs on its products imposed by other countries
Can increase in its current account balance of payments deficit with other countries
Dan increase in the country's interest rate relative to the interest rates of other countries
✓ Correct answer
C: an increase in its current account balance of payments deficit with other countries
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill International economic issues and see which topics are most likely to come up next.
Sign up free →