Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

(a)[12]

Distinguish between the internal value of money and the external value of money and judge whether a connection exists between these two values.

(b)[13]

‘Policies which attempt to control the internal value of money will automatically make it difficult to control the external value of money.’ Discuss the view that this statement is only partly true.

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