Exam 32: A Macroeconomic Theory of the Open Economy

Why do higher real interest rates lead to lower net capital outflow?

Other things the same,when a Canadian company imports bicycles from the U.S. ,the open-economy macroeconomic model treats this transaction as an increase in the quantity of dollars demanded in the U.S.foreign-currency exchange market.

If the U.S.imposes a quota on cotton,then

If a county becomes more likely to default on its bonds,what happens to that country's interest rate and exchange rate? Explain.