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A floating exchange rate is when the price of money is determined only by demand and supply, no government intervention occurs. The factors, which influence the level of a country’s exchange rate are the ...
GDP is a monetary value, it is the "total money value of all final goods and services produced in an economy in one year," therefore it fails to take into consideration any social indicators, wh...
Part (a) 10 marks, Explain... (15 minutes approx). -Plan your answer (5 mins) Make sure to include: -Definitions of key terms -Graphs -Explanations for graphs and theory/concepts, backed up with examples ...
GDP fails to include areas such as education (e.g. years of schooling), Health (e.g. numbers of doctors per 1000 inhabitants, life expectancy), income distribution etc.
Causes of exchange rate fluctuations:
- short term - changes in the demand and supply of the currency in the FOREX markets. (mainly due to speculations).
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