Question

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Answer 1

When a countries currency appreciates it is generally good for the country and for their stocks because it makes it easier to buy trade from countries with lower prices, so yea it is good for business. On the other hand, it makes it a little harder for every day citizens because prices begin to rise and it makes it harder for items to be purchased and can impact the economy negatively. Another problem with the countries prices rising is inflation, Thus an increase in the price level will cause an increase in average interest rates in an economy. In contrast, a decrease in the price level (deflation) will cause a decrease in average interest rates in an economy.