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International Economics 8. Suppose that foreigners decided that financial investments in the United States were not a good idea. What would they do?
International Economics
8. Suppose that foreigners decided that financial investments in the United States were not a good idea. What would they do? What effect would these actions have on the value of the dollar and U.S. interest rates?
9. Japan has run large current account surpluses for much of the past two decades, yet noone ever asks if these surpluses are sustainable. Why are surpluses treated differently than deficits?
10. How is the balance of payments linked to national saving and investment? Explain
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