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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2015 · Q301 Mark

A government uses monetary policy to manage its economy. Which sequence correctly describes the most likely consequence of an increase in the country's inflation rate? [Table 30.1]

Afall decrease depreciate
Bfall increase appreciate
Crise decrease depreciate
Drise increase appreciate

✓ Correct answer

D: rise increase appreciate

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2015 Paper 1 Variant 2, question 30.

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