Exchange Rates Flashcards by Teghan Souyana | Brainscape

Q

micro effects of a strong exchange rate 4

A

lower costs for firms>higher profitability

exports dearer>firms will want to be more efficient

lower prices

higher consumer choice

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Q

macro effects of strong exchange rate 4

A

current account deficit increases

higher unemployment

lower demand pull inflation

lower AD as lower x-m

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