Question

1-What are the components of a country’s balance of payments accounts? Explain

2-Explain the impacts of the following on a country’s current account balance?

A decrease in the country’s rate of inflation

An increase in the country’s income level

An increase in government restrictions such as tariffs

An appreciation of the country’s currency

3-What are the goals of the World Bank and the International Monetary Fund?

4-What is the J-curve effect and its implications?

5-What is the primary benefit of international capital flows to the US economy?

Answer 1