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Question 23M.2.SL.TZ0.1d

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Date May 2023 Marks available [Maximum mark: 4] Reference code 23M.2.SL.TZ0.1d
Level SL Paper 2 Time zone TZ0
Command term Explain Question number d Adapted from N/A
d.
[Maximum mark: 4]
23M.2.SL.TZ0.1d
(d)

Using an exchange rate diagram, explain how the end of the commodity boom might have contributed to the depreciation of the peso (Text A, paragraph 4).

[4]

Markscheme

Candidates who label diagrams incorrectly can be awarded a maximum of [3].

For an exchange rate diagram, the vertical axis may be exchange rate, price/value of the peso in US$, US$/peso or US$ per peso (another currency or simply ‘another currency’ may be used instead of ‘US$’). The horizontal axis should be quantity, or quantity of peso. A title is not necessary.

Examiners report

Except for occasional mislabelling of the vertical axis and incorrect curve shifts, this question was generally well attempted. Some explanations were incomplete as they merely stated that decreased exports would shift the demand curve to the left without elaborating on the reduced need for foreign consumers to purchase the peso to pay for goods from Uruguay.

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