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James Fortson


A fixed exchange rate is one where the price of one currency is
the same as the price of other currencies. However, if the price
comes under threat by market forces then the central bank will
either buy/sell the currency and/or change the…

Page 2

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James Fortson

If a country's interest rates increase then it is likely that the exchange rate will also rise. This is
because a higher exchange rate usually results in an increase in demand and fall in supply of the
country's currency.

People from abroad will be more willing to buy…


Whitney Koranteng

can you please add in the  Marshall-Lerner condition. thank you

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