11. Currencies are traded in the foreign exchange market; the prices at which they are traded are...

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11. Currencies are traded in the foreign exchange market; the prices at which they are traded are exchange rates. When a currency rises against another currency, it appreciates; when it falls, it depreciates.

The equilibrium exchange rate matches the quantity of that currency supplied to the foreign exchange market to the quantity demanded.

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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