AS Level ECONOMICS P1 (Discussion) - M/J/2013

[-V!p3R-]

Can u give any reason as to why real exchange rate appreciated....

I agree that exchange rate improved by 10% and that domestic prices fall by 10%.... but brother study the effect of fall in prices on E.R. When prices fall, we are able to export more goods and services.... so the demand of our currency will shift outwards making it strong and causing it to appreciate

 

[SalmanPakRocks]

Was it's Ans " Rate of unemployment benefits increased than unemployment rate?

Yes!

 

[Rashmit Arora]

no worries. I remember the question not my answer well that would make it appreciation.
also it was stated that the mexican inflation rate went down but us inflation stayed the same.
that' s appreciation again, i think

You're right. Appreciation and appreciation, because even after the inflation took effect, the peso's value had risen by 0.1 . What did you write for that question about something making the trade deficit a significant problem? Question 26 I guess?

 

[SalmanPakRocks]

You're right. Appreciation and appreciation, because even after the inflation took effect, the peso's value had risen by 0.1 . What did you write for that question about something making the trade deficit a significant problem? Question 26 I guess?

That should be, C, the raw materials one.

 

[Rashmit Arora]

Yup. That was an easy question, just had to plug in the numbers. What about the question about the rate of inflation decreasing?! We were given price indices for different years.

That was option B. Cause the rate of inflation first fell in year 2 (option B)... right?

 

[Rashmit Arora]

That should be, C, the raw materials one.

I contemplated over that for so long and ultimately ticked A. I ticked A because had I ticked C, my last 4 answers would have all been C, which just felt wrong gah, losing one mark.

 

[hardik]

I agree that exchange rate improved by 10% and that domestic prices fall by 10%.... but brother study the effect of fall in prices on E.R. When prices fall, we are able to export more goods and services.... so the demand of our currency will shift outwards making it strong and causing it to appreciate

Brother ...again u r falling short of basics....just type real effective exchange rate on google...it is far from what u are saying...have a look at a photo I have posted......

 

[hardik]

i did that too. but it wasnt A, it was the security camera one. its in a very old past paper :/

Do u have old past papers....like of 90's

 

[pakiboy]

Thnks for telling that most of my friends went for a but unfortunately they are wrng
I got that right!

 

[-V!p3R-]

Brother ...again u r falling short of basics....just type real effective exchange rate on google...it is far from what u are saying...have a look at a photo I have posted......

May be i m freaking out u can ask someone else and let me know as well

 

[Speed_Freak]

You're right. Appreciation and appreciation, because even after the inflation took effect, the peso's value had risen by 0.1 . What did you write for that question about something making the trade deficit a significant problem? Question 26 I guess?

I Wen With The Imported Raw Material Being Export.

 

[fcbayernmunchen]

answer for the US $ and Japanese YEN one was.. increase in IMPORTED INFLATION, right?

 

[thunderbolt]

what did u guys write on the current account thing..was it a-it moved into defecit or b-difference of exported goods increased

 

[Sameed Khalid]

does anyone remember the answer of that question which was related to social benefits exceeding pvt or social cost something like that??

 

[Someone101123]

does anyone remember the answer of that question which was related to social benefits exceeding pvt or social cost something like that??

external benefits exceed 100m ?

 

[Nafis Imtiaz]

What was the answer to the last one? Said the country experienced a balance of payments surplus. What would the govt. have to do to keep the "Fixed" exchange rate at its target? The options were decreasing govt. borrowing, decreasing govt. spending, don't remember option C, and decreasing the money supply.

 

[Speed_Freak]

external benefits exceed 100m ?

that was a repeat question yeah?

answer for the US $ and Japanese YEN one was.. increase in IMPORTED INFLATION, right?

yeah i got that

 

[Rashmit Arora]

What was the answer to the last one? Said the country experienced a balance of payments surplus. What would the govt. have to do to keep the "Fixed" exchange rate at its target? The options were decreasing govt. borrowing, decreasing govt. spending, don't remember option C, and decreasing the money supply.

From what I remember it was C (decrease in interest rates). A surplus would mean that their currency would tend to appreciate. So in order to keep the exchange rate at the same value, the gov will have to reduce the value of its exchange rate. A decrease in the interest rates would lead to reduced demand for the currency, and so cause its value to fall. So C should be the answer..

 

[Adrienne Lim]

Yeh, mine too went good but I had to think so much.
Is anyone else on the same boat or everyone else did the paper with ease?

Me ! I mean it needed a lot of brainstorming ~

 

[Speed_Freak]

From what I remember it was C (decrease in interest rates). A surplus would mean that their currency would tend to appreciate. So in order to keep the exchange rate at the same value, the gov will have to reduce the value of its exchange rate. A decrease in the interest rates would lead to reduced demand for the currency, and so cause its value to fall. So C should be the answer..

what about the question that concerned the year when inflation fell? i went with D. 2012?