29/10/15
Lesson 3: Managed, advantages/disadvantages
Learning Objective: I can identify advantages and disadvantages of high/low exchange rates.
DA: Using two currencies, give one example of how demand and supply of a currency can change. Include whether it's an revaluation/devaluation or appreciation/depreciation.
DA: Using two currencies, give one example of how demand and supply of a currency can change. Include whether it's an revaluation/devaluation or appreciation/depreciation.
Managed exchange rates: In reality, no currency is completely free floating.
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Advantages/Disadvantages of a high/low exchange rate:
Advantages of high exchange rate 1. Downward pressure of inflation
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Disadvantages of high exchange rate 1. Damage to export industries:
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