A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2020 · Q261 Mark
The government of an open economy with an overvalued currency decides to abandon its fixed exchange rate in favour of a floating exchange rate. Which macroeconomic policy aim is least likely to be met because of this change?
Alow inflation rate
Blow level of unemployment
Creduced balance of payments deficit
Dsustainable rate of economic growth
✓ Correct answer
A: low inflation rate
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