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14a Exchange Rate (Fixed Exchange Rate (Overvalued Currency…

- - - - Foreign imports cheaper :candy:
        
        Higher demand
        for imports
        
        Speed up industrialisation
        
        Lower imported cost-push inflationary pressures
    - - Domestic exports more expensive :moneybag:
        
        Lower demand for exports
        
        Export industries worse off
        
        Results in
        
        Decrease in economic growth
        
        Increase in unemployment
      - Increased import expenditure
        
        Decreased export revenue
        
        Worsening current account deficit
        
        Lower AD
        
        Lower economic growth
      - Foreign imports cheaper :candy:
        
        Higher demand for imports
        
        Lower demand for domestic goods
        
        Domestic industries worse off