Economics (AS & A Level) · May / June 2025 · Paper 31 · Question 24

9708Links between macroeconomic problems and their interrelatedness

An economy imports a large proportion of its raw materials. Its exchange rate depreciates. What is the impact on the external and internal value of money?

Aexternal value of money rises; internal value of money rises
Bexternal value of money rises; internal value of money falls
Cexternal value of money falls; internal value of money rises
Dexternal value of money falls; internal value of money falls

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

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