Economics (AS & A Level) · May / June 2025 · Paper 33 · 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

As printed in the paper

Show the answer

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

Sit this whole paper →More on Links between macroeconomic problems and their interrelatedness

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.