Lecture6--THREEKEYMARKETS

Lecture6--THREEKEYMARKETS - ThreeKeyMarketsinthe Economy x

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Three Key Markets in the  Economy 1.Foreign Exchange Markets 2.Labor Markets 3.Credit Markets
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Foreign exchange markets are a means of  trading the money of one nation for that of  another.
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Foreign Exchange Markets A demand for dollars  is generated when  foreigners want to buy  dollars to acquire U.S.  goods, services or  U.S. assets A supply of dollars is  generated when  holders of dollars  want acquire foreign  goods, services or  assets Foreign Exchange rate (Yen per dollar) Dollars (Millions per Day) 145 Supply Demand
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Foreign Exchange Markets A Decrease in the demand for U.S. dollars by Japanese holders of yen will cause the foreign exchange rate of the dollar in terms of yen to fall Foreign Exchange rate (Yen per dollar) Dollars (Millions per Day) 145 Supply Demand
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Foreign Exchange Markets A Decrease in the demand for U.S. dollars by Japanese holders of yen will cause the foreign exchange rate of the dollar in terms of yen to fall Foreign Exchange rate (Yen per dollar) Dollars (Millions per Day) 145 Supply Initial Demand 100 New Demand
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Lecture6--THREEKEYMARKETS - ThreeKeyMarketsinthe Economy x

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