ECN 204 Lecture Notes - Lecture 13: Foreign Exchange Market, Ryerson University, Autarky
Document Summary
Readings: chapters 12 page 282 only (please read the related topics from other introductory level of macroeconomics textbooks for your own benefits). You have to make your own note from lecture. A closed economy does not interact with other economies in the world. An open economy interacts freely with other economies around the world. It buys and sells goods and services in world product markets. It buys and sells capital assets in world financial markets. Net exports (nx), aka the trade balance. = value of exports value of imports. A c t i v e l e a r n i n g 1. The u. s. experiences a recession (falling incomes, rising unemployment) Canadian net exports would fall due to a fall in american consumers" purchases of canadian exports. Canadian consumers decide to be patriotic and buy more products made in canada . Canadian net exports would rise due to a fall in imports.
