Macroeconomics – 10. Exchange Rates, The Balance of Payments, and Trade Deficits

  1. What is the basic trade identity equation?
  2. What are the three major components of the Current Account? Which is the biggest?
  3. Define an exchange rate.
  4. Explain the three major reasons why exchange rates change.
  5. Describe the gold standard. When and why did it collapse?
  6. Explain the gold specie flow mechanism.
  7. What was the major difference between the gold standard and the Bretton Woods system? When and why did Bretton Woods collapse?
  8. Describe the current international monetary system.
  9. What is an exchange-rate intervention?
  10. What are the three major causes of the chronic trade deficits of the United States?
  11. Illustrate the multiplier link.
  12. Suppose that America wants to reduce its trade deficit with Japan. What might the United States encourage Japan to do?
  13. Illustrate the monetary link.
  14. Explain some of the difficulties of coordinating macroeconomic policies between countries.
  15. Illustrate the benefits of global coordination.
打赏
Liked it? Take a second to support admin on Patreon!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.