While they are conceptually simple, many economic factors go into the determination of exchange rates. And exchange rates influence many of the prices you pay in the store, they influence the number of jobs in the export sector of the economy and they even impact the price of a cup of coffee. Many people believe that a "strong" US Dollar is critical to the strength of the US economy. A "strong" dollar means one that can buy a goodly amount of a foreign currency. But does a "strong" dollar really benefit the US economy? And if so, in what ways? And in what ways does it harm the US economy? Review the Powerpoint presentation: Exchange Rates Part III Exchange Rates Part III - Alternative Formats before continuing with the week's discussion. Now we are ready to examine how exchange rates are set and what the impacts on the US economy from a "strong" dollar versus a "weak" dollar actually are