Pound depreciation Flashcards
(3 cards)
1
Q
Explain diagram
A
£ to $ on y axis, on X axis, quantity of £, D and S normal lines, S shifts right from s1 to s2, Q increases, so does ER
2
Q
Define depreciation
A
Downward movement of ER
3
Q
Explain reasons for pound depreciation
A
After effect of Brexit
Low IR, uncertainty about UK-EU relationship, UK expected to be poorer and less productive in coming years
