Explain what the possible results could be from increasing the Euro/US dollar exchange rate (you are Euro)
When the exchange rate EU/US goes up, (1/5 becomes 1/10) the euro becomes worth less. If they euro is worth less, European products become cheaper to the US, potentially stimulating exports, while US products become more expensive for Europe, potentially decreasing imports. The EU might be able to alter its current balance and increase its overall GDP.
Can also look into the effects of exchange rates on interest and inflation!
MV
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