DP Economics
Question 18M.3.HL.TZ0.3k
| Date | May 2018 | Marks available | [Maximum mark: 4] | Reference code | 18M.3.HL.TZ0.3k |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Explain | Question number | k | Adapted from | N/A |
k.
[Maximum mark: 4]
18M.3.HL.TZ0.3k
Table 5 provides information relating to the Balance of Payments for Urbania for 2017.
Table 5
Urbania has a current account deficit of $125 million in 2017.
(k)
Explain how a depreciation of the Urbanian dollar ($) might result in a J-curve effect.
[4]
Markscheme
N.B.: A sketch of a J curve, without any explanation, would only be sufficient for 1 mark (only if it is properly labelled).
