________- An increase in the value of a currency as measured by the amount of foreign currency it can buy.
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Depreciation
________- a decrease in the value of a currency as measured by the amount of foreign currency it can buy.
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3
nominal exchange rate
The ________ between the currencies of two countries must reflect the price levels in those countries.
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Net capital outflow
________- the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.
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government policies
The ________ that affect foreign ownership of domestic assets.
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Trade surplus
________ - the excess of exports over imports.
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Trade balance
________- the value of a nations exports minus the value of its imports; also called net exports.
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Nominal exchange rate
________: the rate at which a person can trade the currency of one country for the currency of another.
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net capital outflow
When a nations saving exceeds its domestic investment, its ________ is position, indicating that the nation is using some of its savings to buy assets abroad 18.2: The Prices for International Transactions: Real and Nominal Exchange Rates.
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