Economics (McConnell), 18th Edition

Chapter 38: The Balance of Payments, Exchange Rates, and Trade Deficits

IN THIS CHAPTER YOU WILL LEARN:

1. How currencies of different nations are exchanged when international transactions take place.



2. About the balance sheet the United States uses to account for the international payments it makes and receives.



3. How exchange rates are determined in currency markets.



4. The difference between flexible exchange rates and fixed exchange rates.



5. The causes and consequences of recent record-high U.S. trade deficits.