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Economics (AS & A Level) · Oct / Nov 2022 · Paper 11 · Question 30

9708Price stability

Which combination of changes is most likely to result in a fall in a country's inflation rate?

  1. Aexchange rate lower, interest rate higher, money supply higher
  2. Bexchange rate higher, interest rate higher, money supply lower
  3. Cexchange rate higher, interest rate lower, money supply lower
  4. Dexchange rate lower, interest rate lower, money supply higher

As printed in the paper

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Correct answer: B. exchange rate higher, interest rate higher, money supply lower

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