ECO105Y1 Lecture Notes - Lecture 18: Aggregate Demand, Shortage, Current Account

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22 Mar 2018
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The demand for products, services, and assets from other countries, which must be paid for in local currencies, are behind demand and su pply on the foreign exchange market, determining exchange rates. Exchange rate price one currency exchanges for another currency. Exchange rate is the price of 1 canadian dollar. If the price of c. 00 = ussh. 80, it takes 80 cents u. s. to buy 1 canadian dollar. Foreign exchange market worldwide market where currencies bought and sold. Currency depreciation fall in exchange rate of one currency for another. Currency appreciation rise in exchange rate of one currency for another. Law of demand for canadian dollars as exchange rate rises, quantity demanded of c$ decreases. Canadian exports and assets more expensive for r. o. w. Price of tim hortons coffee in canada and the united states. Demand for canadian dollars in foreign exchange market. Foreign currency to buy imports & assets from r. o. w. Supply of one currency is demand for another currency.

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