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Paper 3 > Exchange Rates - Micro/Macro - Causes/Effects/Policies > Flashcards

Exchange Rates - Micro/Macro - Causes/Effects/Policies Flashcards

1
Q

What are the Macro effects of a weak exchange rate

A

Current Account improvement
Growth
Employment
Inflation
Inward FDI

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2
Q

What are the Micro effects of a weak exchange rate

A

Increased CoP
Inefficiency

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3
Q

What Macro factors cause a weak exchange rate

A

Current Account Deficit
Lower interest rates
Quantitative Easing
Outward FDI

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4
Q

What Micro factors cause a weak exchange rate

A

Lower Export Demand
Higher Import Demand

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Paper 3 (7 decks)

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