Economics Multiple Choice Question – 15 April 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

An appreciation in the value of a country’s currency will lead to ………..?

Select ONE answer:

  1. a rise in government spending
  2. a rise in the rate of inflation
  3. a fall in the rate of unemployment
  4. a fall in the price of imports to that country

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

  1. If the government imports this will fall (ceteris paribus).
  2. May reduce both demand pull and cost push inflationary pressures.
  3. A rise in imports and falling exports will reduce domestic demand.
  4. Correct: When a currency appreciates, imports become cheaper.

 

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