Brian ORoark of Robert Morris University explains the model of the open economy. This includes the connection of the money market and interest rates to the foreign exchange market and the exchange rate. Look also for the connection of savings and investment to the net exports and net capital outflow.
When a resident of a certain country wants to purchase a good, service, or asset from another country, do they usually need to exchange their currency for that country's currency first?
If I have 10,000 Yen, and decide to purchase stock in a Japanese company, does that transaction contribute to my country's NCO?
econmode 8 months ago