Changes in the exchange rate

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Intros
Lessons
  1. Shifts to Demand Curve for US Dollars
    • 3 Ways It can Shift
    • World Demand for US Exports
    • US Interest Rate Differential
    • Expected Future Exchange Rate
  2. Shifts to Supply Curve for US Dollars
    • 3 Ways it can Shift
    • World Demand for US Imports
    • US Interest Rate Differential
    • Expected Future Exchange Rate
  3. Appreciation & Depreciation of US dollars
    • Case 1: Increase in Interest Rate
    • Increase in Exchange Rate โ€‰ \, โ€‰ \, Appreciation
    • Case 2: Decrease in Interest Rate
    • Decrease in Exchange Rate โ€‰ \, โ€‰ \, Depreciation
  4. Real Exchange Rate
    • Real Exchange Rate Formula
    • Short Run
    • Long Run
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Examples