Economics 9708 · AS & A Level · Efficiency

Efficiency — practice question

A government in an open economy that has an overvalued currency chooses to give up its fixed exchange rate and switch to a floating exchange rate. Which macroeconomic policy aim is least likely to be achieved as a result of this change?

  • Aa low inflation rate
  • Ba low level of unemployment
  • Ca reduced balance of payments deficit
  • Da sustainable rate of economic growth

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI