Appreciation
What Appreciation means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Appreciation
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Reference: Pearson Edexcel
A rise in a currency's value so that it buys more foreign currency, caused for example by higher interest rates bringing in hot money flows.
A rise in the value of one currency against another, for example when the exchange rate moves from £1 = $1.20 to £1 = $1.30.
Topics that use Appreciation
- Exchange rates (Pearson Edexcel A-Level)
Related terms
- Depreciation
- Effective exchange rate
- Hot money flows
- Index numbers
- International competitiveness
- Macroeconomic performance
- Exchange rate
Using Appreciation in the exam
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