How would a depreciation of the currency of a low-income economy be most likely to affect its macroeconomic policy objectives?

A.
B.
C.
D.
Economics
IGCSE&ALevel
CAIE
Exam No:9708_s25_qp_34 Year:2025 Question No:29

Answer:

B

Knowledge points:

10.1.1 objectives in terms of inflation, balance of payments, unemployment, growth, development, sustainability and redistribution of income and wealth
6.4.5 AD/AS analysis of the impact of exchange rate changes on the domestic economy’s equilibrium national income and the level of real output, the price level and employment

Solution:

Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Android
Download
Google Play
Download