02 Jun Question Assignments: Read Chapters 31 and 32 Answer Questions For Review 1,2,4 and 5 at the end of Chapte
Question
Assignments:
Read Chapters 31 and 32
Answer Questions For Review 1,2,4 and 5 at the end of Chapter 31, and Questions For Review 1,2 and 4 at the end of Chapter 32.
1. Define net exports and net capital outflow. Explain how and why they are related.
1. Explain the relationship among saving, investment, and net capital outflow.
1. Describe the economic logic behind the theory of purchasing-power parity.
1. If the Fed started printing large quantities of U.S. dollars, what would happen to the number of Japanese yen a dollar could buy? Why?
1. Ddescribe supply and demand in the market for loanable funds and the market for foreign-currency exchange. How are these markets linked?
1. Why are budget deficits and trade deficits sometimes called the twin deficits?
1. Wwhat is capital flight? When a country experiences capital flight, what is the effect on its interest rate and exchange rate?
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