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Currency Exchange ProgramLast update: Saturday 19th of May 2012
2) Current State of the Economy: 4. The Spot Market 1. Forwards Tax cuts can stimulate the economy, as long as the consumer spends the extra money he or she may have. But also, tax cuts which are to large can result in a lower demand for the US dollar, and a drop in it's value. This is true whether you are talking about the degree of unemployment, degree of consumer spending, and extent of business expansion that is taking place in a country. High unemployment, decrease consumer spending, with a decrease in demand for a currency. If the presidents popularity is dropping, due to unpopular government policies, this may result in a lowering of the purchasing capability of society, which results in a decrease in it's value. Related to the economy, is the prices of foreign goods. If a foreign company sells goods in a country which are cheaper then comparable products produced in that country, this can hurt the economy of that country. A poor economy results in a deleterious affect on the economy. In this case, currency value will decrease. 1. The ability to leverage relatively
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