the extent to which a sharp depreciation of the pound will improve the UK current account of the balance of payments.

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  • Created by: Lottie
  • Created on: 24-05-12 11:27
  • Exporters will be able to sell their goods more cheaply and so
  • increase their total revenue or total exports rise
  • Imports into the UK become more expensive so less are demanded
  • at the higher price and there is a fall in expenditure on imports
  • In the short run manufacturing orders will not change as they are
  • struck at a fixed price for a number of months, but in the long run
  • change should take effect

Recognition that manufacturing exports account for

Comments

Harpz

Hi these notes you have put up are great :D Thank you. 

I was just wondering if this question was to come up in an AS level exam how many marks would it be roughly? Thank you 

Lottie

12 marks

Nnannan

thats the mark scheme not an answer

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