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
Answered by Merle V. Economics tutor

2488 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

The elasticity of supply of frozen pizzas is likely to be more elastic than the supply of fresh vegetables. Do you agree with this statement?


Describe what is economies of scale?


Explain two causes of a shift of a supply curve to the right.


What is the effect of a rise in Interest rate on the level of growth in the economy?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning