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Economics (AS & A Level) · May / June 2026 · Paper 14 · Question 29

9708Exchange rates

There is a floating exchange rate between country M and country N. Which changes will definitely cause an appreciation of country M's currency?

  1. Avalue of exports from M to N decreases | value of imports from N to M decreases
  2. Bvalue of exports from M to N decreases | value of imports from N to M increases
  3. Cvalue of exports from M to N increases | value of imports from N to M decreases
  4. Dvalue of exports from M to N increases | value of imports from N to M increases

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Correct answer: C. value of exports from M to N increases | value of imports from N to M decreases

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