L11 - Macro Theory of the Open Economy

Questão	Responda
Equilibrium in an open economy: What two markets are involved in this model?	1. The market for loanable funds 2. The market for foreign currency exchange
What is NCO?	Net capital outflow. The net flow of funds being invested abroad by a country during a certain period of time. A positive NCO means that the country invests outside more than the world invests in it.
What happens to net exports and the current account balance when the exchange rate increases?	Net exports decrease and the current account balance also decreases.
What is 'trade policy'?	Tariffs and import quotas
What does 'capital flight' mean?	When an economy doesn't look too good, people from that country will invest in other countries.

Resumo de Recurso

	Criado por Sophia Lynch mais de 4 anos atrás