Economics (AS & A Level) · Feb / March 2025 · Paper 32 · Question 20

9708Links between macroeconomic problems and their interrelatedness

If prices increase in country X but stay the same in country Y, what will be the most likely impact on the internal and external value of money in country X?

Ainternal value of money falls; external value of money falls
Binternal value of money falls; external value of money rises
Cinternal value of money rises; external value of money falls
Dinternal value of money rises; external value of money rises

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Correct answer: A. internal value of money falls; external value of money falls

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