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Terms in this set (32) QUESTIONS VERIFIED ANSWERS
Trade balance= Net exports
Net exports= exports-imports
Current account balance= net exports + net investment
income + net transfers
The IP curve represents equilibrium in the international bond market
The IP curve gives equilibrium E (the value of the i
home currency) as a function of....
We move along the IP curve when changes in i; E
______ cause changes in ______.
The IP curve shifts when any other factor changes exchange rate
the _________________________.
What are three examples of what causes the IP curve foreign interest rates, EFV of
to shift? home currency, risk premiums