- 8.1: 1. How would the following transactions be categorized in theU.S. b...
- 8.2: The accompanying diagram shows the assets of the rest ofthe world t...
- 8.3: In the economy of Scottopia in 2008, exports equaled $400 billionof...
- 8.4: In the economy of Popania in 2008, total Popanian purchasesof asset...
- 8.5: Suppose that Northlandia and Southlandia are the only twotrading co...
- 8.6: Based on the exchange rates for the first trading days of 2009and 2...
- 8.7: Go to http://fx.sauder.ubc.ca. Using the table labeled TheMost Rece...
- 8.8: Suppose the United States and Japan are the only two tradingcountri...
- 8.9: From January 1, 2001, to June 30, 2003, the U.S. federal fundsrate ...
- 8.10: In each of the following scenarios, suppose that the two nationsare...
- 8.11: Starting from a position of equilibrium in the foreign exchangemark...
- 8.12: Suppose that Albernias central bank has fixed the value of itscurre...
- 8.13: Your study partner asks you, If central banks lose the abilityto us...
Solutions for Chapter 8: The Open Economy: International Trade and Finance
Full solutions for Krugman's Macroeconomics for AP* | 1st Edition
Arrow’s impossibility theorem
a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences
a visual model of the economy that shows how dollars flow through markets among households and firms
the interest rate on the loans that the Fed makes to banks
diseconomies of scal
the property whereby long-run average total cost rises as the quantity of output increases
risk that affects only a single company
unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills
the revenue the government raises by creating money
the study of how households and firms make decisions and how they interact in markets
a market structure in which many firms sell products that are similar but not identical
the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
the production of goods and services valued at current prices
claims that attempt to describe the world as it is
the ability of an individual to own and exercise control over scarce resources
the fraction of deposits that banks hold as reserves
the limited nature of society’s resources
a situation in which quantity demanded is greater than quantity supplied
the organized withdrawal of labor from a firm by a union
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
a cost that has already been committed and cannot be recovered