曼昆经济学原理第五版答案英文ch.doc

PAGE 16 Chapter 29 — OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS Chapter 29 — OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS PAGE 15 Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS 29 TITLE OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS 29 WHAT’S NEW: There is a new FYI box on “The Euro” and a new In the News box on “It’s the 21st Century, Do You Know Where Your Capital Is?” A new Case Study on “The Hamburger Standard” has also been added. LEARNING OBJECTIVES: By the end of this chapter, students should understand: how net exports measure the international flow of goods and services. how net foreign investment measures the international flow of capital. why net exports must always equal net foreigh investment. how saving, domestic investment, and net foreign investment are related. the meaning of the nominal exchange rate and the real exchange rate. purchasing-power parity as a theory of how exchange rates are determined. KEY POINTS: Net exports are the value of domestic goods and services sold abroad minus the value of foreign goods and services sold domestically. Net foreign investment is the acquisition of foreign assets by domestic residents minus the acquisition of domestic assets by foreigners. Because every international transaction involves an exchange of an asset for a good or service, an economy’s net foreign investment always equals its net exports. An economy’s saving can be used to finance investment at home or buy assets abroad. Thus, national saving equals domestic investment plus net foreign investment. The nominal exchange rate is the relative price of the currency of two countries, and the real exchange rate is the relative price of the goods and services of two countries. When the nominal exchange rate changes so that each