Câu hỏi Macro Thứ 4 ngày 23/03/2011

Questions for Macroeconomy on Wednesday, 23 th March

K36

The open economy

1. What are net capital outflow and trade balance? What is/ are their relationship(s)?
2. Define nominal exchange rate and real exchange rate?
3. What is the relationship between real exchange rate and trade balance?
4. What happens to saving, investment, trade balance, interest rate and exchange rate if the government of a small open economy increases government purchases?
5. What is the impact of protectionist trade policies on the real exchange rate?
6. Explain the special case of Purchasing-Power-Parity?
7. Give example: low inflation in Japan and high inflation in Vietnam. How does this effect on the exchange rate between the Japanese Yen and Vietnamese Dong?