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Economics (AS & A Level) · May / June 2025 · Paper 11 · Question 30

9708Exchange rates

The table shows the change in the value of UK sterling over a three-month period. | June | Sept | | £1 = $1.38 | £1 = $1.32 | What is likely to be the short-term impact of the change in the value of UK sterling on the UK economy?

  1. Aincreased disinflation
  2. Bincrease in cost-push inflation
  3. Cmore purchasing power of money
  4. Dreduced demand-pull inflation

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Correct answer: B. increase in cost-push inflation

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