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Chapter 19 - A Macroeconomic Theory of the Open Economy
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1
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Tariff
________- a tax on imported goods.
2
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Capital flight
________- a large and sudden reduction in the demand for assets located in a country.
3
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Government budget deficit
________ represents a negative public saving.
4
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equilibrium interest rate
At the ________, the amount that people want to save exactly balances the desired quantities of domestic investment and net capital outflow.
5
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Import quota
________- a limit on the quantity of a good produced abroad that can be sold domestically.
6
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Net capital outflow curve
________ is the link between the market for loanable funds and the market for foreign currency exchange.
7
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net capital outflow
The ________ does not depend on the exchange rate.
8
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Trade policy
________- a government policy that directly influences the number of goods and services that a country imports or exports.
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