Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

The table presents details of the nominal interest rate and the inflation rate for selected countries in July 2010. What conclusion can be drawn from this information?

  • AThe cost of living was higher in India than in China.
  • BThe money rate of interest was higher in Indonesia than in Pakistan.
  • CThe real rate of interest was positive in Japan but negative in Pakistan.
  • DThe standard of living was higher in Indonesia than in India.

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