Why do people of home country demand foreign currencies and why do they supply foreign currencies in forex market.  Assuming that capital inflow in home country increases due to more negative impact of Corona virus in developed countries, explain whether PKR will appreciate or depreciate

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 6SCQ: A booming economy can attract financial capital inflows, which promote further growth. However,...
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Why do people of home country demand foreign currencies and why do they supply foreign currencies in forex market.  Assuming that capital inflow in home country increases due to more negative impact of Corona virus in developed countries, explain whether PKR will appreciate or depreciate.

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