A-LevelEconomicsInternational Trade and Global Economy / Balance of PaymentsOct/Nov 2024Paper 1 Q251 Mark
A country has a floating exchange rate. Its current account on the balance of payments moves from a surplus to a deficit. Which rate is likely to increase in the short run as a consequence of this worsening of its current account?
Aeconomic growth rate
Bexchange rate
Cinterest rate
Dunemployment rate
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of international trade and global economy / balance of payments 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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