Economics (McConnell), AP* Edition, 20th EditionChapter 39:
The Balance of Payments, Exchange Rates, and Trade Deficits After studying this chapter, you should be able to: LO 39.1 | Explain how currencies of different nations are exchanged when international transactions take place. | LO 39.2 | Analyze the balance sheet the United States uses to account for the international payments it makes and receives. | LO 39.3 | Discuss how exchange rates are determined in currency markets that have flexible exchange rates. | LO 39.4 | Describe the difference between flexible exchange rates and fixed exchange rates. | LO 39.5 | Explain the current system of managed floating exchange rates. | LO 39.6 | Identify the causes and consequences of recent U.S. trade deficits. |
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