Economics 9708 · AS & A Level · 6.4

6.4 — practice question

A government wants the external exchange rate of its currency to rise in order to reduce inflationary expectations. What action should it take?

  • Adiscourage inward foreign direct investment
  • Braise interest rates
  • Craise the level of aggregate demand in the economy
  • Dremove quotas on imported products

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