Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

The information below relates to money supply and prices in the years 2006 and 2010 for four countries. Over the period 2006 to 2010, which country experienced the greatest rate of inflation? (The answer choices match countries A-D, each with the stated money supply and price index pair.)

  • ACountry A: 2006 money supply 69, price index 104; 2010 money supply 78, price index 153
  • BCountry B: 2006 money supply 65, price index 112; 2010 money supply 120, price index 247
  • CCountry C: 2006 money supply 70, price index 101; 2010 money supply 213, price index 157
  • DCountry D: 2006 money supply 172, price index 105; 2010 money supply 360, price index 210

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