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11-24-2008, 01:36 PM | #1 |
Scooby Newbie
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how do exchange rates work?
I understand the rate part, but what decides a rate? Why is 1 brittish pound 1.5 USD?
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11-24-2008, 01:39 PM | #2 |
The Fellas fella
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11-24-2008, 01:39 PM | #3 |
Scooby Specialist
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supply & demand
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11-24-2008, 01:40 PM | #4 |
Scooby Newbie
Member#: 73922
Join Date: Nov 2004
Location: in del sur
Vehicle:Blue Blue 97 Civic thingy |
so i guess i'm moving to lichttensttein then.
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11-24-2008, 01:41 PM | #5 |
The Fellas fella
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11-24-2008, 01:41 PM | #6 |
Scooby Newbie
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SWIC
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CAD 4 Lyfe.
But seriously, it was kinda cute to see them get all excited for a few months. |
11-24-2008, 01:43 PM | #7 |
Scooby Newbie
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SCIC
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How does Google work?
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11-24-2008, 01:44 PM | #8 |
Scooby Newbie
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11-24-2008, 01:53 PM | #9 |
Scooby Newbie
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as demand for a particular currency increases, its price increases, and vice versa.
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11-24-2008, 01:55 PM | #10 |
Scooby Newbie
Member#: 73922
Join Date: Nov 2004
Location: in del sur
Vehicle:Blue Blue 97 Civic thingy |
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11-24-2008, 01:56 PM | #11 |
Scooby Newbie
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BAIC
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11-24-2008, 01:57 PM | #12 |
Scooby Newbie
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Join Date: Nov 2004
Location: in del sur
Vehicle:Blue Blue 97 Civic thingy |
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11-24-2008, 02:00 PM | #13 |
Scooby Newbie
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11-24-2008, 02:04 PM | #14 |
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11-24-2008, 02:11 PM | #15 |
Scooby Newbie
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11-24-2008, 02:16 PM | #16 |
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11-24-2008, 02:24 PM | #17 |
Scooby Specialist
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the intersection of the commodities market (IS) and the money market (LM) determines the output of the economy, GDP (Y), and the interest rate (r). The interest rate also determines the expected exchange rate Ee. Basically, if interest rates go up, the currency becomes stronger, and if interest rates go down, the currency becomes weaker. |
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