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Economy (Exchange rates (Depreciation causes business that rely on exports…
Economy
Exchange rates
Depreciation causes business that rely on exports enjoy and increase in demand and revenue as their goods will appear cheaper to foreigners
Depreciation causes businesses that rely on imports will struggle, as it will raise costs.
Appreciation causes businesses that rely on imports will save costs, as materials are cheaper
Appreciation causes businesses that rely on exports will appear more expensive to foreigners and demand will fall.
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Unemployment may change
If more people are unemployed, they will have less disposable income. Therefore, the business will not make much profit
If unemployment decreases, people will have more disposable income to buy a business' products
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interest rates
Less disposable income for those who are currently borrowing money as they have to pay higher interest rates
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harder to grow, more expensive to grow