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.
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:
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