________- An increase in the value of a currency as measured by the amount of foreign currency it can buy.
New cards
2
Depreciation
________- a decrease in the value of a currency as measured by the amount of foreign currency it can buy.
New cards
3
nominal exchange rate
The ________ between the currencies of two countries must reflect the price levels in those countries.
New cards
4
government policies
The ________ that affect foreign ownership of domestic assets.
New cards
5
Net capital outflow
________- the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.
New cards
6
domestic investment
When a nations saving exceeds its ________, its net capital outflow is position, indicating that the nation is using some of its savings to buy assets abroad.
New cards
7
Trade
________ surplus- the excess of exports over imports**
New cards
8
Trade balance
________- the value of a nations exports minus the value of its imports; also called net exports.
New cards
9
Nominal exchange rate
________: the rate at which a person can trade the currency of one country for the currency of another.
Studied by 0 people
Note 
Flashcard (40)