Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

If prices rise in country X while remaining unchanged in country Y, what is the most likely effect on the internal and external value of money in country X?

  • Aexternal value of money falls; internal value of money falls
  • Bexternal value of money rises; internal value of money falls
  • Cexternal value of money falls; internal value of money rises
  • Dexternal value of money rises; internal value of money rises

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