Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

Which combination of changes is most likely to cause a country’s inflation rate to fall?

  • Aexchange rate lower; interest rate higher; money supply higher
  • Bexchange rate higher; interest rate higher; money supply lower
  • Cexchange rate higher; interest rate lower; money supply lower
  • Dexchange rate lower; interest rate lower; money supply higher

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