Unit 6.5 : FEM & Net Exports ; Unit 6.6 : Real IRs & International Capital Flows
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10 Terms
1
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exports; imports
A change in international value of a countries currency can drastically effect their _____ and _____
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Net Exports decrease
How does appreciation of a countries currency affect their net exports?
3
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Net Exports increase
How does depreciation of a countries currency affect their net exports?
4
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Real IR decreases, Capital Flow decreases, International Demand for Dollars decrease, Value of Dollar decreases
What happens to value of dollars as a result of a change in real interest rates when Americans save more?
5
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Loanable Funds, Net Capital Outflows, and US Dollars
These 3 graphs show how a change in the interest rate will affect the value of currency...
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Loanable Funds Graph
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Net Capital Outflow Graph
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US Dollars Graph
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What happens when savings increase?
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What happens when investment increases?