Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 26
9708Exchange rates
A country's currency depreciates in terms of other currencies. What would be a consequence of this depreciation?
- AThere would be a decrease in structural unemployment.
- BThere would be a decrease in the volume of exports.
- CThere would be an increase in cost-push inflationary pressure.
- DThere would be an increase in the budget deficit.
As printed in the paper
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Correct answer: C. There would be an increase in cost-push inflationary pressure.
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