This preview shows page 1. Sign up to view the full content.
Unformatted text preview: portfolio investment 8. Capital account: The part of the balance of payments that records relatively minor transactions, such as migrants transfer and sales and purchases of nonproduced, nonfinancial assets 9. Nominal exchange rate: The value of one countrys currency in terms of another countrys currency 10. Currency appreciation: An increase in the market value of one currency relative to another currency 11. Currency depreciation: A decrease in the market value of one currency relative to another currency 12. Speculators: Currency traders who buy and sell foreign exchange in an attempt to profit from changes in exchange rates 13. Real exchange rate: The price of domestic goods in terms of foreign goods 14. Saving and investment equation: An equation that shows that national saving is equal to domestic investment plus net foreign investment...
View Full Document
This note was uploaded on 06/08/2011 for the course ECON 1 taught by Professor Bergstrom during the Spring '07 term at UCSB.
- Spring '07