Card 1 of 22
What must every explanation of a floating exchange-rate movement identify?
A
It fell to about $1.035, its lowest level against the dollar ever recorded.
B
UK goods become relatively dearer, so foreign buyers switch away and demand for pounds falls.
C
Foreign buyers need pounds, so demand for pounds shifts right and the pound appreciates.
D
The demand or supply curve that shifts.
Card 1 of 22
4.3.2 Analyse how exchange rates are determined Flashcards
22 flashcards on OCR GCSE Economics 4.3.2 Analyse how exchange rates are determined: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.