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Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 26

9708Exchange rates

A country has a floating exchange rate. An increase in which variable in the country will cause its currency to appreciate?

  1. Athe budget deficit
  2. Bthe general price level
  3. Cthe interest rate
  4. Dthe trade deficit

As printed in the paper

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Correct answer: C. the interest rate

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