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Economics A Level (DONEEEEEEE)
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Pregunta:
What happens when the Value of a Currency falls in terms of the Economy?
Autor: eric_galvaoRespuesta:
-Exports become Cheaper, and so Domestic Goods become Competitive. This leads to Greater Demand -Imports become more expensive and so Demand for Imports fall -Currency Account deficit should be reduced, and a Surplus should Increased -Employment and Economic Growth are both Increased -Inflation can rise if Demand for Imports are Price Inelastic, which can lead to Cost Push Inflation
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