Economics 9708 · AS & A Level · 6.4

6.4 — practice question

A country uses a floating exchange rate. Its current account in the balance of payments changes from surplus to deficit. Which rate is most likely to rise in the short run as a result of this deterioration in its current account?

  • Aeconomic growth rate
  • Bexchange rate
  • Cinterest rate
  • Dunemployment rate

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