A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2012 · Q291 Mark
In the diagram D₁ and S₁ are the initial demand and supply curves of the UK pound in foreign exchange markets. [Diagram] What will cause the demand curve to shift to D2 and the supply curve to S2?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Aan appreciation of the pound
Ban increase in incomes in the US
Can increase in the price level in the US
Ddecrease in UK interest rates
✓ Correct answer
D: decrease in UK interest rates
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 →