Rearranging the previous equation and solving for Y yields Y GDP results in the following relationship: . Plugging this into the original equation showing the various components of S = This is equivalent to S , since net exports must equal net capital outflow (NCO, also known as net foreign investment). Now suppose that a country is experiencing balanced trade. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to). Outcomes of Balanced Trade Exports Net Exports Imports 0 Y C+I+G Saving Net Capital Outflow Investment 0

The exchange rate is the price of one currency in terms of another currency. An exchange rate specifies how many units of one country's currency equal one unit of another country's currency.   Suppose the following table forecasts exchange rate data for March 16, 2020, in terms of Canadian dollars per unit of foreign currency. Use the information in the table to answer the questions that follow.   NOTE:   the options for the first drop down question are (CDN $274.10 or CDN1,824.15 or CDN 1,548.20 or CDN $548.20)   the options for the second drop down question are (increases or decreases)

Consider the United States and the countries it trades with the most (measured in trade volume): Canada, Mexico, China, and Japan. For simplicity, assume these are the only four countries with which the United States trades. Trade shares (trade weights) and U.S. nominal exchange rates for these four countries are as follows: Country (currency) Share of Trade $ per FX in 2015 $ per FX in 2016 Canada (dollar) 36% 0.8271 0.6892 Mexico (peso) 28% 0.0683 0.0538 China (yuan) 20% 0.1608 0.1522 Japan (yen) 16% 0.0080 0.0086 Compute the percentage change from 2015 to 2016 in the four U.S. bilateral exchange rates (defined as U.S. dollars per unit of foreign exchange, or FX) in the table provided. Use the trade shares as weights to compute the percentage change in the nominal effective exchange rate for the United States between 2015 and 2016 (in U.S. dollars per foreign currency basket). Based on your answer to (b), what happened to the value of the U.S. dollar against this…

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