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Confidence in the economy. If the economy of the country is doing good, it is likely that the confidence in that currency is high, raising the demand. However, when the economy is sloppy, the lack of confidence brings down the demand level.

Level of exports and imports

Relative income changes (Higher income in other countries => go on holidays and thus rising demand for other currencies.)

Relative interest rate (High interest rate => high return => people invest more in it)

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Q: What factors will shift the supply and demand for currency?
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What factors causes shift in demand?

Supply


Will a technological advance shift the supply or demand curve?

it will shift the supply curve to the right


What are the factors that will shift the demand curve?

All factors other than price will shift the demand curve. Price moves along the demand curve.


How does ceteris paribus affects demand curve?

Ceteris Paribus is greek for all others being equal. This is crucial to any economic analysis not just demand and supply since one can't control all the factors. Therefore, when shifting a demand (or supply) surve, we assume that only one factor is causing it to shift and all other factors that can shift the demand curve stays constant.


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Change in: production costs; production environment; price of related good; law; labour demand/price.


A shift in the demand curve is called?

A change in quantity demanded


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Demand can be shaped by numerous factors. Economic circumstances can strengthen or weaken demand. Price and population are also strong demand shapers.


What causes a shift in the supply curve?

the factors that cause the demand curve for bonds to shift are: increase/decrease in inflation rate increase/decrease of common stock increase/decrease of stock prices useful table :


Shift in demand?

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What is determinants of demand?

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