Economics B A-Level
Effective exchange rate
What Effective exchange rate means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Effective exchange rate
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Reference: Pearson Edexcel
An index measuring a currency's value against a basket of other currencies, weighted by the relative importance of trade with each country.
Topics that use Effective exchange rate
- Exchange rates (Pearson Edexcel A-Level)
Related terms
- Appreciation
- Depreciation
- Hot money flows
- Index numbers
- International competitiveness
- Macroeconomic performance
- Exchange rate
Using Effective exchange rate in the exam
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