O-LevelEconomicsInternational trade and globalisation2281/12 · May/June 2024 · Q291 Mark
The table shows the average exchange rate of the UK pound (£) to the US dollar ($), that is the amount of $ that can be bought with £1. [Table showing year and exchange rate UK£/US$]. What is a likely effect of this change on the UK economy?
Adecreased cost-push inflation
Bdecreased current account deficit
Cincreased quantity of imports
Dincreased trade deficit
✓ Correct answer
B: decreased current account deficit
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