Other Macro Section B Mock 2019

Question 1

With reference to Extract A, explain the role of forward markets in currencies.
(5)

Answer 1

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Question 2

(b) With reference to Extract A and Figure 1, examine the likely impact of the change
in the sterling exchange rate on the UK economy.
(8)

Answer 2

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Question 3

(c) With reference to the last paragraph in Extract C, assess the impact of a fall in real
incomes on subjective happiness.
(10)

Answer 3

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Question 4

(d) With reference to Extract C, discuss the potential conflicts between
macroeconomic objectives when the central bank attempts to control inflation.
(12)

Answer 4

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