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A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2020 · Q241 Mark

A country with a floating exchange rate experiences a large surplus on the current account of its balance of payments. What is likely to decrease as a consequence?

Aexports of capital from the country
Bthe level of employment in the county
Cthe prices of imports into the country
Dthe value of the country’s currency

✓ Correct answer

C: the prices of imports into the country

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About this question

Topic
International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2020 Paper 1 Variant 2, question 24.

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