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Learning Objectives
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In this chapter you will learn:
  • How currencies of different nations are exchanged when international transactions take place.
  • About the balance sheet the United States uses to account for the international payments it makes and receives.
  • How exchange rates are determined in currency markets.
  • The difference between flexible exchange rates and fixed exchange rates.
  • The causes and consequences of recent record-high U.S. trade deficits.







McConnell, Macro 17e OLCOnline Learning Center

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