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hi Hank you econ students this is mr. Clifford welcome to ac/dc econ right now were gonna talk about floating and fixed exchange rate you should have already watched the video explaining the demand and supply for different currencies and how we get an exchange rate should also understand the idea of appreciation and depreciation now it turns out theres two different types of exchange rates theres floating and theres fixed a floating exchange rate is one that fluctuates with the market so if demand goes up or down or supply goes up and down the exchange rates going to change in the market sets the exchange rate a fixed exchange rate is when the government takes control and tries to hang one currencies value to another currency the government doesnt allow market forces to work and they try to keep that exchange rate fixed or at least in some sort of range it seems like we have that debate a whole lot in economics right should the government do something or should they stay out of o