A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2018 · Q231 Mark

A government wishes to raise the value of the external exchange rate of its currency. What should it do?

Adiscourage inward foreign direct investment

Braise interest rates

Craise the level of aggregate demand in the economy

Dremove quotas on imported products

✓ Correct answer

B: raise interest rates

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2018 Paper 1 Variant 2, question 23.

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