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open economy
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net exports
value of a nations exports minus the value of its imports
net capital outflow
the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners
trade surplus
an excess of exports over imports
trade deficit
an excess of imports over exports
nominal exchange rate
the rate at which a person can exchange the currency of one country for the currency of another
real exchange rate
the rate at which a person can trade goods and services of one country for the goods and services of another
appreciation/ depreciation
appreciation-increase in the value of a currencyas measured by the amount of foreign currency it can buy
depreciation-decrease in the value of a currencyas measured by the amount of foreign currency it can buy
purchasing power parity
the theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries
arbitrage
taking advantage of price differences for same items in different markets
real exchange rate
nominal exchange rate*domestic price
foreign exchange rate
Author
Anonymous
ID
3048
Card Set
open economy
Description
export import
Updated
2009-12-14T05:42:42Z
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