Exchange rates and aggregate demand
Exchange rates and aggregate demand
A depreciation is a market-driven fall in the value of a floating currency. It lowers the foreign-currency price of domestic exports and raises the domestic-currency price of imports.
Step-by-step lessons on CIE Intl A Level Economics 6.4.5 AD/AS analysis of the impact of exchange rate changes on the domestic economy. Each one builds up to exam-style questions.