Chapter 34 Open-Economy Macroeconomics

Chapter 34 Open-Economy Macroeconomics

Author: Matthew Lonn

Students will explore the demand and supply of foreign currencies along with examining the difference between the current and capital accounts.

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Questions you should be able to answer.

What is the different between the capital account and the current account?

What is the BOP?

How do I draw a supply and demand curve in the FOREX market?

What is the FOREX market and what can cause a shift in the demand and supply of foreign currencies?


Chapter 34 Notes

Current and Capital Accounts

The FOREX Market