Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 23

What shows the correct outcome for the policy option?

1. Adepreciation of the exchange rate — encourages more exports, which also means greater employment
2. Bhigher interest rates — attracts hot money inflows, and is an incentive for more consumer spending
3. Cdecreased government spending — more workers will be employed, and more imports will be bought
4. Dreduction in income taxes — increases consumer spending, with increased demand for exports

As printed in the paper