What you’ll learn5 learning objectivesChoose one objective for a focused lesson, or study the complete topic.6.4.1Exchange rate• Definition of exchange rateSyllabus objective6.4.2Floating exchange rate• Determination of a floating exchange rateSyllabus objective6.4.3Depreciation vs appreciation• Distinction between depreciation and appreciation of a floating exchange rateSyllabus objective6.4.4Exchange rate changes• Causes of changes in a floating exchange rate: demand and supply of the currencySyllabus objective6.4.5Exchange rates in AD/AS• AD/AS analysis of the impact of exchange rate changes on the domestic economy's equilibrium national income and the level of real output, the price level and employmentSyllabus objective