A-LevelEconomicsInternational Trade and FinanceOct/Nov 2016Paper 1 Q241 Mark
In the diagram, curves D₁D₁ and SS relate to the demand for and supply of £ sterling in the foreign exchange market. What may cause the demand curve to shift from D₁D₁ to D2D2?
Aan increase in the price of US goods sold in the UK
Ban increase in UK interest rates
Cthe development of US substitutes for UK goods
Dthe removal of UK tariffs against US goods
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of international trade and finance within the Economicssyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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