Chapter 19 - A Macroeconomic Theory of the Open Economy

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Tariff

________- a tax on imported goods.

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Capital flight

________- a large and sudden reduction in the demand for assets located in a country.

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Government budget deficit

________ represents a negative public saving.

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equilibrium interest rate

At the ________, the amount that people want to save exactly balances the desired quantities of domestic investment and net capital outflow.

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Import quota

________- a limit on the quantity of a good produced abroad that can be sold domestically.

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Net capital outflow curve

________ is the link between the market for loanable funds and the market for foreign currency exchange.

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net capital outflow

The ________ does not depend on the exchange rate.

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Trade policy

________- a government policy that directly influences the number of goods and services that a country imports or exports.

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