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World Economy 2010 Prediction :

States

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International Finance

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  • - Understand that an exchange rate is the price of a currency.
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  • - Know the forces that operate on the demand side of the foreign exchange market.
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  • - Know the forces that operate on the supply side of the foreign exchange market.
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  • - Understand how supply and demand interact to determine the equilibrium exchange rate.
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  • - Understand the essential aspects of balance-of-payments accounting.
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  • - Be able to demonstrate graphically the forces that cause a currency to appreciate or depreciate.
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  • - Understand why there is resistance to exchange-rate changes.
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  • - Be able to describe several exchange-rate systems and their consequences.
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  • - Understand the macroeconomic and microeconomic consequences of exchange-rate movements.
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  • - Be able to describe a balance-of-payments problem.
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  • - Be aware of the recent history of currency bailouts.

 

 

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