A-LevelEconomicsInflation and DeflationMay/June 2017Paper 1 Q211 Mark
Which combination of events is most likely to cause inflation? [Figure 21.1]
Afalling exchange rate, falling direct taxes, falling money supply
Bfalling exchange rate, falling direct taxes, rising money supply
Crising exchange rate, rising direct taxes, rising money supply
Drising exchange rate, rising direct taxes, falling money supply
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of inflation and deflation 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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