Economics · May / June 2020 · Paper 12 · Question 28

There has been an appreciation of the value of a country's currency against other currencies. What effects will this have on prices of imports of raw materials and prices of exports of manufactured goods?

1. Aprices of imports of raw materials cheaper; prices of exports of manufactured goods cheaper
2. Bprices of imports of raw materials cheaper; prices of exports of manufactured goods more expensive
3. Cprices of imports of raw materials more expensive; prices of exports of manufactured goods cheaper
4. Dprices of imports of raw materials more expensive; prices of exports of manufactured goods more expensive

As printed in the paper