Question

Supply and demand approach of exchange rate determination

Answer 1

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Certain forces affect the demand for and supply of dollars, or of any other currency, in foreign exchange markets. The demand–supply model of exchange rate determination implies that the equilibrium exchange rate changes when the factors that affect the demand and supply conditions change.

Answer 2

Explanation:

forces affect the demand for and supply of dollars, or of any other currency, in foreign exchange markets. The demand–supply model of exchange rate determination implies that the equilibrium exchange rate changes when the factors that affect the demand and supply conditions change.