© 2010 Pearson Addison-Wesley. Currencies and Exchange Rates To buy goods and services produced in another country we need money of that country. Foreign.
9 THE EXCHANGE RATE AND THE BALANCE OF PAYMENTS © 2014 Pearson Addison-Wesley After studying this chapter, you will be able to: Explain how the exchange.
Ch. 10: The Exchange Rate and the Balance of Payments. Exchange rates Definition Determinants Short run Long run Purchasing power parity Interest rate.
The Exchange Rate and the Balance of Payments CHAPTER 26.
Canada Andrew & Shayne. Introduction Exchange Rates Canadian dollar.
Foreign Exchange (aka. FOREX) Exchange Rate = Relative Price of Currencies.
EXCHANGE RATES Examples. Floating, creeping, and sinking exchange rates.
The Exchange Rate and the Balance of Payments
Practice 1. U.S. income increase relative to other countries. Does the balance of trade move toward a deficit or a surplus? -U.S. citizens have more disposable.
Exchange Rates. An exchange rate is the price of one currency in terms of another. –It indicates how many units of one currency can be bought with a single.
THE EXCHANGE RATE AND THE BALANCE OF PAYMENTS