Question 20N.3.HL.TZ0.3b.ii
| Date | November 2020 | Marks available | [Maximum mark: 2] | Reference code | 20N.3.HL.TZ0.3b.ii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Sketch | Question number | b.ii | Adapted from | N/A |
Figure 5 illustrates the year-on-year changes in Mexico’s spending on imports of goods and services between 2008 and 2017.
[Source: The World Bank 2019: World Development Indicators Licenced under CC BY 4.0
https://creativecommons.org/licenses/by/4.0/.]
Using information from Figure 5, sketch an exchange rate diagram to show how the change in Mexico’s spending on imports in 2010 would have affected its exchange rate (US$ per MX$), ceteris paribus.
[2]
[1] for labelled S and D curves with a shift of S to the right
[2] for labelled S and D curves with a shift of S to the right AND for showing the fall in the value of the peso.
Generally well-answered by the majority. Weaker students tended to shift the demand curve to the right, which would reflect increased export revenue rather than decreased import spending.
