Use the word labels to fill the blanks and complete the sentences below. Not all

Question

Use the word labels to fill the blanks and complete the sentences below. Not all of the words will be used, but all the blanks should be filled. Assume the world has only the U.S. and Germany, and that trade between them is balanced such that neither runs a trade deficit nor surplus. If exchange rates now change such that the U.S. dollar becomes cheaper for Germans to buy (and all else remains the same), we would expect: U.S. exports to Germany will and U.S. imports from Germany will These changes in trade will cause net exports (NX) in the U.S. to The U.S would begin to run a trade and experience a net capital U.S. savings will be domestic investment.

Explanation / Answer

INCREASE DECREASE
INCREASE
SURPLUS INFLOW
LESS THAN

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