Saturday, May 10, 2008

Unit 3: The effect of a depreciating exchange rate on trade

This BBC article says that the US trade deficit shrank by more than expected in March as the weak dollar led to a surge in exports and a fall in imports

http://news.bbc.co.uk/1/hi/business/7392496.stm

a) Using a numerical example, explain why exports rose and imports fell

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