Macro: Unit 5.2 -- The Foreign Exchange Market

Hey Everyone! I'm Mr. Willis, and You Will Love Economics!

In this video, I will:
- Explain how exchange rates work
- Discuss currency appreciation and depreciation and how it impacts the price of imported
and exported goods
- Practice calculating currency conversion at a given exchange rate
- Define foreign exchange demand
- Explain the factors that contribute to the inverse relationship between exchange rates
and currency demanded
- Define foreign exchange supply
- Explain the factors that contribute to the positive relationship between exchange rates
and currency supplied
- Identify the 4 components of foreign exchange supply and demand
- Use graphs to analyze how a change in currency demand will impact exchange rates
- Use graphs to analyze how a change in currency supply will impact exchange rates


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