- Consider how to define net exports and net capital outflow.
- Consider how to explain the relationship among saving, investment, and net capital outflow.
- Consider how to describe the economic logic behind the theory of purchasing-power parity
- Consider how to describe supply and demand in the market for loanable funds and the market for foreign-currency exchange. How are these markets linked?
- Consider why are budget deficits and trade deficits sometimes called the twin deficits?
