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Examine the factors that influence a country s exchange rate.
Suppose and define a floating exchange rate, the major issue here is to outline the factors influencing the supply and demand for a given currency - having stated that the (external) value of a currency is of course set in terms of another currency
Interest rate sensitivity can also be understood from another perspective. The total cost of a commodity is not just its price, but also what must be paid to borrow money to purch
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Transactions demand for money: Transactions demand for money represents cash balances held by economic agents in order to carry outordinary everyday transactions.For example,
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