Q1. Whyarenetexportsandnetcapitaloutflowalwaysequal?

Q2. Derivetherelationbetweensavings,domesticinvestment,andnetcapitaloutflowusingthenationalincomeaccountingidentity.Supposethatacountryhas$120billionofnationalsaving,and$80billionofdomesticinvestment.Isthispossible?Wheredidtheother$40billionofnationalsavingsgo?

Q3. Howdothenominalexchangerateandtherealexchangeratediffer?Whatdoespurchasing-powerparityimplyabouttherealexchangerate?Explainwhatthismeans.

Q4. Using foreign exchange market schedules to show how the following scenarios affect the equiribrium exchange rate and transaction quantity of USD?

1. Vietnamese citizens consume more US goods
2. Vietnamese goods becames less desirable to the U.S.
3. Foreigners invest more into Vietnam.
4. State Bank of Vietnam buys more USD.
5. The U.S price level fell ralative to the Vietnam price level.

Q5. In the fixed exchange rate regime, How does the Central Bank can fix the exchange rate in the following situations:

1. Vietnamese citizens consume less US goods
2. Vietnamese goods becames more desirable to the U.S.
3. Foreigners invest more into Vietnam.
4. The Vietnam price level fell ralative to the U.S price level.