Effect of Changes, Foreign Exchange Market
AP Macroeconomics · Flashcards
AP MACROECONOMICS · FLASHCARDS
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QUESTION
What is the effect of political stability on a currency's value?
QUESTION
How does a decrease in consumer spending influence the currency value?
QUESTION
What is the impact of a decrease in inflation on currency value?
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ANSWER
Currency value generally appreciates. Lower inflation maintains purchasing power and currency value.
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