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  • Added for You - The Effects Of An Increase In The Value Of The Euro

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    An appreciation in the EURO means the Euro is worth more compared to othe
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    Generally an appreciation is good news for EU consumers who buy from abroad. It is bad news for exporters who will find a decrease in their profit margins. An appreciation can help reduce inflation in the Eurozone but could also cause lower economic growth.

    1. Exports more expensive An appreciation in the EURO means the Euro is worth more compared to othe

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    d. It is bad news for exporters who will find a decrease in their profit margins. An appreciation can help reduce inflation in the Eurozone but could also cause lower economic growth.

    1. Exports more expensive An appreciation in the EURO means the Euro is worth more compared to othe

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    argins. An appreciation can help reduce inflation in the Eurozone but could also cause lower economic growth.

    1. Exports more expensive An appreciation in the EURO means the Euro is worth more compared to othe

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    d also cause lower economic growth.

    1. Exports more expensive An appreciation in the EURO means the Euro is worth more compared to othe

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    An appreciation in the EURO means the Euro is worth more compared to other currencies like the dollar. Therefore EU exports will be more expensive and less competitive. Therefore there will be a fall in demand for exports. However the effect depends upon the elasticity of demand. If demand is inelastic then there will only be a small fall in quantity demanded.

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