Macroeconomics
Given a supply and demand graph for currency exchange, if the demand curve shifts to the right, what is the likely impact on the equilibrium exchange rate?
What role does supply play in determining exchange rates in a floating system?
What is a key reason for government intervention in a managed float system?
Which of the following is a disadvantage of a fixed exchange rate system?
In a floating exchange rate system, what happens when the demand for a currency increases?
What is a primary advantage of government intervention in a managed float exchange rate system?
If a country's imports increase significantly, what is the likely impact on its currency's exchange rate in a floating system?
What is a managed float exchange rate system?
What is a potential risk of currency pegging?