Macroeconomic Question:

Changes in the value of a nation's currency affect the nation's net exports, and thus GDP. How might this make a large country, like the U.S., more willing to adopt a flexible exchange rate regime than a small country, like Belgium.

Rubric

Criteria	Not Evident	Developing	Proficient	Distinguished	Weight
Why do large countries, like the U.S., typically have a lower portion of their GDP as exports and imports, than a small country like Belgium?					4
How does the size of a nation's trade sector affect the stability of its GDP?					3
How do exchange rate fluctuations affect a nation's GDP?					4
Why might a large country be more willing to adopt a flexible exchange rate than a small country would?					6
Write up your analysis using correct language, explaining all your work					3
					Total: 20

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