ECO 372 Week 3 participation Principles of Macroeconomics, Ch. 18: Open-Economy Macroeconomics — Basic Concepts

Consider the following as you read:

1. Consider how to define net exports and net capital outflow.
2. Consider how to explain the relationship among saving, investment, and net capital outflow.
3. Consider how to describe the economic logic behind the theory of purchasing-power parity.