Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

The diagram shows a comparison of the inflation rates in Paraguay and Argentina from 1950 to 2005. What conclusion can be drawn about the inflation rates in the two countries over the period 1950 to 2005?

  • AArgentina’s prices fell rapidly between 1992 and 1995.
  • BArgentina stabilised its price level between 1973 and 1992.
  • CParaguay was always more successful than Argentina at controlling its inflation rate.
  • DParaguay was most successful at controlling its inflation rate between 1962 and 1970.

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