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CH35 APECON MACRO
Term | Definition |
---|---|
open economy | economy that interacts freely with other economies around the world |
closed economy | economy that does not interact with other economies in the world |
trade balance | the value of a nation's exports minus value of its imports |
trade deficit | excess of imports over exports |
trade surplus | excess of exports over imports |
net exports | country's exports minus country's imports bought and sold |
current account | net exports/current balance of trade sum of goods and services, investment income, and transfer payments |
capital account | change in the current account |
nominal exhchange | the rate at which a person can trade the currency of one country for the currency of another |
appreciation | value goes up |
depreciation | value goes down |
trade policy | agreements and regulations on controlling imports and exports to foreign countries |
capital fight | money rapidly flow out of a country due to a economy consequence |