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Suppose the US dollar has been appreciating for some time compared to other foreign currency. What does the dollar appreciating imply about the following for
Suppose the US dollar has been appreciating for some time compared to other foreign currency. What does the dollar appreciating imply about the following for the US: US exports and imports: Will exports increase or decrease? Will imports increase or decrease? Net exports: Will exports be larger or smaller than imports? Will net exports be positive, negative, or 0? US net capital outflow (NCO): Will it be positive, negative, or 0? Saving and investment: Will S>I, S
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