A-LevelEconomicsExchange RatesOct/Nov 2020Paper 1 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
The correct answer is A. This question tests the candidate's understanding of exchange rates 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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