Macro 5.3- Foreign Exchange Practice

Mr. Clifford from ACDC Econ explains foreign exchange, focusing on currency appreciation and depreciation. He provides six examples involving the US dollar and Japanese yen, illustrating how various economic scenarios affect currency demand and supply. The video covers topics like tourism, tax cuts, inflation, interest rates, tariffs, and recession, helping viewers understand the dynamics of currency exchange.

What happens to the demand for yen if United States tourists love Japan?

How does a cut in income taxes in the US affect the demand for yen?

What is the effect of higher inflation in Japan on the demand for US dollars?

Explain the relationship between interest rates in Japan and the demand for yen.

What occurs to the US dollar when Japan imposes high tariffs on US imports?