amanmurarka
Badges: 0
Rep:
?
#1
Report Thread starter 6 years ago
#1
In a freely floating exchange rate system, when the value of a currency tends to fall , how does this cause the prices to rise?
0
reply
gr8wizard10
Badges: 21
Rep:
?
#2
Report 6 years ago
#2
It doesn't. When the value of a currency falls, prices stay constant in the domestic economy. Prices of foreign goods however become relatively expensive as you would need more of the domestic currency to buy the same amount of foreign currency.
0
reply
amanmurarka
Badges: 0
Rep:
?
#3
Report Thread starter 6 years ago
#3
Oh okay. Thank you
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

How do you prefer to get careers advice?

I like to speak to my friends and family (8)
9.52%
I like to do my own research online using careers specific websites (54)
64.29%
I like speaking to the careers advisors at school, college or uni (12)
14.29%
I prefer to listen watch videos or listen to podcasts of people in my chosen career (9)
10.71%
Something else (let us know in the thread) (1)
1.19%

Watched Threads

View All
Latest
My Feed