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- Explain the factors that affect the supply and demand for currency.
- Learn how the exchange rate is determined and how it is used across countries.
- Understand why currency appreciates and depreciates.
- Discuss how the exchange rate is affected by fiscal and monetary policies.
- Explain how imports and exports are affected by currency changes.
- Provide examples of trade deficits and trade surpluses.
- Describe the relationship between the current account and trade deficits, as well as the financial account and trade deficits.
1. Foreign Currency Exchange: Supply and Demand for Currency
In this lesson, you'll learn why money from different countries has different values of exchange. We'll cover the supply and demand for currencies and how changes in supply and demand can affect the exchange rates between currencies.
2. Exchange Rate: Determination and Conversion Across Countries
Understand what exchange rates are and the different types that can be used by governments and countries. See how they operate and how the conversion process works across countries.
3. Currency Appreciation & Depreciation: Effects of Exchange Rate Changes
Find out how changes in the exchange rate can affect the economy and your own individual situation. Discover how these currency changes can increase and decrease your purchasing power and standard of living.
4. How Fiscal and Monetary Policies Affect the Exchange Rate
Discover how fiscal and monetary policy can affect the exchange rate and ultimately the amount of money it costs you to buy goods and services. Find out the three paths that both fiscal and monetary policy can travel to impact the exchange rate.
5. How Currency Changes Affect Imports and Exports
Learn about how currency changes can affect imports and exports. Find out how this affects you. Discover what happens when a dollar is strong compared to other currencies and what happens when it is weak.
6. Achieving Trade Balance: Trade Deficit and Surplus Examples
Find out what trade balance, trade deficit, and trade surplus are. Learn about some recent examples that help clarify trade deficit and surplus. Explore what countries have a surplus and what countries have a deficit.
7. Balance of Payments: Current Account & Measuring Foreign Trade
Find out what the current account is and the four main foreign trade components that it is comprised of. Similar to your bank account, learn how the current account is measured and what a deficit and surplus mean when talking about this economic indicator.
8. Balance of Payments with Financial Accounts: Measuring Foreign Trade
Learn about the balance of payments and the two key components that make it up. Discover what the financial/capital account is and how it relates to foreign trade and surpluses and deficits.
9. What is Free Trade? - Definition, Pros, Cons & Examples
Is free trade a good thing? The issue of free trade has been a source of debate for centuries, and in this lesson, we will discuss the pros and cons of free trade that have led to this debate.
10. What Is NAFTA? - Definition, Effects & History
In this lesson, you'll learn about the North American Free Trade Agreement (NAFTA), the current trade agreement between the United States, Canada, and Mexico. After the lesson you can assess your understanding with a short quiz.
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Other chapters within the College Macroeconomics: Tutoring Solution course
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- Comparative Advantage, Specialization and Exchange: Tutoring Solution
- Demand, Supply and Market Equilibrium: Tutoring Solution
- Measuring the Economy: Tutoring Solution
- Inflation Measurement and Adjustment: Tutoring Solution
- Understanding Unemployment: Tutoring Solution
- Aggregate Demand and Supply: Tutoring Solution
- Macroeconomic Equilibrium: Tutoring Solution
- Inflation and Unemployment: Tutoring Solution
- Economic Growth and Productivity: Tutoring Solution
- Money, Banking, and Financial Markets: Tutoring Solution
- Central Bank and the Money Supply: Tutoring Solution
- Fiscal and Monetary Policies: Tutoring Solution
- Inflows, Outflows, and Restrictions: Tutoring Solution