Explain how a floating exchange rate works, Microeconomics

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Explain how a floating exchange rate works and the variables which affect the rate.

Define a floating exchange rate as the price of a currency (in terms of another or basket of currencies) being determined by market forces, i.e. supply and demand of the currency. Using two S/D diagrams illustrate and exemplify such market forces - all the while clearly referring to the diagram

 


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EM13106443, May I get a quote on order number EM13106443. Thanks

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