Imports impact the economy in several aspects. For example, at the micro level, imports affect competition by increasing supply in the domestic
Exchange Rate
What Are the Factors Affecting Imports?
Availability is a factor affecting imports. We import goods from abroad because they are unavailable in the domestic market. For example, the domestic
How Exchange Rates Affect Aggregate Demand and the Economy
Exchange rates affect aggregate demand through their effects on exports and imports. Specifically, it affects the relative prices of imported or
Real Exchange Rate: How To Calculate, Impacts, Determining Factors
What's it: The real exchange rate is the price of one currency against another currency adjusted for differences in the price levels of domestic
Purchasing Power Parity: Formula, Calculation, Pros, Cons
What's it: Purchasing power parity (PPP) is an economic concept for equalizing the price of a set of identical items across different locations.
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Currency Appreciation: Meaning, How It Works, Causes, Effects
What's it: Currency appreciation is when the exchange rate of one currency against another currency increases. One unit of currency can buy more
Currency: Types, Purchasing Power, Exchange Rates
What's it: Currency refers to the money accepted and used as legal tender in a country. It includes banknotes and coins you use daily. The
Currency Crisis: Causes, Signs, Impacts and Possible Solutions
What's it: A currency crisis is a situation in which the exchange rate of a currency falls, causing a sharp decline in foreign reserves. The fall
Exchange Rate In Economics: Types, Effects, Determining Factors
Exchange rate represents the price of one currency when we exchange to another currency. For example, the current exchange rate of Rp/USD is 14,000.
Exports: Importance, Types, Influencing Factors
What's it: Export means sending domestic goods and services to foreign markets for sale. As compensation, we get foreign currency as payment, say
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Currency Depreciation: Meaning, Causes, Impacts
Currency depreciation is a decrease in the purchasing power of domestic currency against other currencies. Currency depreciation has considerable