Why and how net exports and net capital flow are related to each other? If Saudi Arabia experience trade deficit does it necessarily create trouble for a county’s economic growth? Using Purchasing-Power Parity Theory, how nominal exchange rates of a country are determined in relation to other countries?

Why and how net exports and net capital flow are related to each other? If Saudi Arabia experience trade deficit does it necessarily create trouble for a county’s economic growth? Using Purchasing-Power Parity Theory, how nominal exchange rates of a country are determined in relation to other countries?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: International Finance

Section22.3: Fixed Exchange Rate

Problem 1ST

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