EC2B3 Topic 10: International Macroeconomics Flashcards
1
Q
How does a small open economy with perfect capital mobility faces world real interest, and goods market clear
A
By adjusting net exports
2
Q
How do capital controls adj how the economy operates
A
Behaves more like a closed economy
3
Q
Are nominal exchange rates more or less volatile than goods prices
A
More volatile
4
Q
How dos sticky good prices effect nominal exchange rate
A
Mean they have a real impact on competitiveness
5
Q
What does MP autonomy
A
