Macroeconomics Unit 6: Open Economy- International Trade and Finance
46. Explain the difference between the current account and the capital and financial account.
47. Explain why two currencies can't appreciate relative to each other at the same time.
48. Explain why appreciation of the currency results in a decrease in net exports for the country.
49. Explain why inflation results in both a decrease in demand and an increase in supply for a country's currency.
50. Explain why an increase in real interest rate will increase financial capital inflow.