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Economics Resources

Foreign Exchange

  • Explain why governments are sometimes concerned about the level of exchange rate of their country’s currency and discuss what policies they might adopt to influence the exchange rate.
  • What might cause an appreciation of a floating exchange rate?
  • Discuss whether an appreciation of a country’s exchange rate will always be beneficial to that country.
  • Explain how the determination of a floating exchange rate differs from that of a fixed exchange rate.

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