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Let us take a look at what macroeconomics is and its Changes in exchange rate –
Macroeconomics
Economics has a sister branch know as macroeconomics that deals with overall changes in performances of economy. It is a result of growth, unemployment, trade happening internationally and also inflation altogether.
Changes in the exchange rate
Since currency is always freely traded 24×7, there are relevant and constant changes in exchange rate that happens. There are six factors that influenced this change and they are as follows:-
1. Rate of Interest- Higher interest rates, more returns to investors.
2. Growth of economy and its stability- Stable and a low-risk country has a strong value of currency.
3. Rate of inflation- Lower rates of inflation, brings more currency value.
4. Discrepancy in current accounts- Spending is higher than income and currency value will decline soon.
5. Trading terms- Stronger the trade terms, stronger will be any currency.
6. Level of debts in public- High inflations due to deficits in budget.
All these factors play an important role to determine change in exchange rate. Our team of experienced and eminent team members of Changes in the exchange rate Assignment Help just jotted a quick summary of what macroeconomics and changes in the exchange rate are. But to get proper help you will need to register with us soon. Why? Following are some of practical reasons.
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