Causes of shifts in currency supply and demand curves explained | AP Macroeconomics | Khan Academy

💡 Factors that cause shifts in currency supply and demand curves.

📈 The intersection of supply and demand curves represents the equilibrium point.

💰 Understanding who regulates the supply and demand of a currency is important.

💡 The supply of a currency is determined by the people who hold it, with the majority being residents of the country.

💰 Shifts in currency demand occur when people want to convert their non-native currency to the currency in question.

🌍 The demand for a currency can also be influenced by people residing in other countries who hold a different currency.

✨ An increase in supply occurs when there is a movement along the supply curve to the right as a result of a desire to exchange currency for another currency.

📈 Increases in demand for foreign currency can be caused by an increase in demand for goods, services, or assets denominated in that currency.

💰 Increased demand for American products, services, and assets can be influenced by factors such as perceived profitability and safe investment opportunities.

🌍 Shifts in currency supply and demand curves can be caused by changes in relative prices.

💵 When demand for American products and services increases, the value of the yuan decreases.

⬅️➡️ Changes in demand or supply can cause movements along the currency supply and demand curves.

💡 Increases in demand for Chinese products, services, and assets lead to an increase in demand for the yuan.

💰 Investing in China and converting dollars to yuan can result in higher profits.

📉 A decrease in demand for Chinese products, services, and assets will cause a shift in demand to the other side.