Principles of Macroeconomics / Unit 13 MAC 1203 short lesson, about 20 seconds
Every Trade Is Two-Sided
Captions available
The idea
Demanding one currency means supplying another, because every exchange has two sides. The market for dollars in pesos and the market for pesos in dollars are one market drawn twice.
In practice
Ten pesos per dollar is the same fact as ten cents per peso.
Where people slip
The two are mirror images, so a rise in one is a fall in the other.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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