ECO372 Week 5 Discussion Question 1

Question: #1613

Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates? What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets?

Solution: #1598

ECO372 Week 5 Discussion Question 1

Explain how foreign exchange rates are determined. Pg. 482 Exchange rates are determined by : Changes in a Country’s Income, Changes in a Country’s Pric...