[Sekots]

I am studying for BEC and I just got to the economics sections of the materials. I understand pretty much all of the material just from reading but I have always had some issues with exchange rates. The materials states that an appreciated currency will cause an decrease in AD which will lead to an increase in imports and decrease in exports and vise versa for depreciated currency. Can someone explain it a litter more clearly than my material? I don’t think it will be a big deal as I have pretty much remembered what happens in each scenario I would just like to understand the how a little better.

Thanks!

REG - 82 (October 2015)
BEC - 83 (November 2015)
FAR - 81 (February 2016)
AUD - 61, 79 (July 2016)

Becker Self-Study. Becker Final Review for Audit.